TSMC Overtakes Samsung In Global Semiconductor Sales

TSMC, the world's largest foundry company, is reported to have overtaken Samsung to become the world leader in semiconductor sales. A Taiwanese company received NT$613 billion (approx.

According to Korean media, Samsung's overreliance on memory chips hurt semiconductor sales last quarter. The company's operating income from its semiconductor business reached 6 trillion won between July and September this year. But more than 90% (more than 5.5 trillion won) is in the storage segment. Application processors and other semiconductor devices make almost no money.

Samsung has long been the world's largest supplier of memory chips. So there is nothing wrong with the fact that the company strengthens its business. But at the same time, he needs to improve other areas of the semiconductor business, otherwise he may find himself in such a situation. With demand for memory solutions plummeting in recent months amid global economic uncertainty, the entire semiconductor business has been affected.

TSMC, on the other hand, continues to attract large semiconductor customers with its superior foundry technology. Despite the downturn in the industry and the resulting drop in prices, the Taiwanese company reported a significant 48 percent increase in semiconductor sales in the third quarter of this year. This massive growth has allowed Samsung to jump to the top.

Samsung recently released its earnings guidance for the third quarter of 2022, forecasting a 31% fall in earnings compared to last year. This will be the company's first annual decline in profits in nearly three years and the lowest since early 2021.

In the smartphone market, Samsung expects sales of the Galaxy Z Fold 4 and Galaxy Z Flip 4 to reach around 15 million units this year, but industry analysts believe the company may be 50 percent off its target by almost a year. By 2022, it will only be able to sell about eight million of its latest complex blocks. Not very good prospects for conventional smartphones and other electronic products.

Of course, some global economic conditions are to blame, but Samsung's troubles in the semiconductor business may have a deeper root. The customer lost confidence in their foundry technology due to the poor performance of the Exynos processor. Time will tell if the company can make a difference by releasing a 3nm smartphone processor based on the new GAA (Gate-All-Around) manufacturing technology.

Understanding the Global Semiconductor Industry