Counterpoint Technology Market Research has published the results of a study of the global market for the production of microchips for smartphone devices in the first quarter of this year. The statistics presented include the release of “systems on a chip” (SoC), discrete application processors and individual modems. Various production technologies are considered. It seems that TSMC is still dominating the market.
TSMC ships 70 percent of the AP/SoC and baseband chips for smartphones in Q1 2022
Shipments of the listed products in the period from January to March inclusive decreased year on year by 5%. This is due to the seasonal factor, the current geopolitical situation and excess supplies in the last quarter of 2021.
However, if we consider the industry in terms of money, then the growth on an annualized basis was 23%. Such a significant increase is associated with an increase in the share of more expensive products; with support for 5G mobile communications.
Approximately 69.9% of all smartphone chips produced during the quarter left TSMC lines. Another 30% was the share of Samsung. All other market participants collectively control only 0.1%.
In the segment of products manufactured using advanced technologies with norms of 4 and 5 nanometers, Samsung is in the lead with a result of 60%. The remaining 40% belongs to TSMC.
Commenting on the foundry landscape for smartphone segment, Senior Research Analyst, Parv Sharma, said, “Foundries are extremely high CAPEX, cutting-edge technology businesses which have led to a duopoly for manufacturing advanced chipsets for smartphones. TSMC and Samsung Foundry together control the entire smartphone chipset market and TSMC is more than double Samsung in terms of manufacturing scale and market share. TSMC CAPEX spending is much higher than the competitors. It will invest $100 billion between 2021-2023 in 5/4nm and 3nm chip fabrication facilities, WFE, 3D packaging, and ramp up for 5/4nm and 28nm to meet the growing demand. Thus enabling TSMC to capture a large share in the advanced nodes”.