TSMC believes its chip technology is too advanced for Huawei or any other new competitors to catch up with it
The world's largest semiconductor company, TSMC, said it does not see the resurgence of Huawei as a threat to its chip leadership. The Taiwanese giant is confident that its technology is so advanced that Huawei, China and other new competitors will not be able to catch up. This assertion is not unfounded, as even the established players in the market have not been able to challenge its dominance.
Here's What We Know
Several companies dominate the semiconductor manufacturing market, but TSMC holds the largest share. In the first quarter of 2024, the company controlled 62% of the market by revenue, while Samsung was second with a 13% share. This situation has been in place for years. TSMC and Samsung are the only companies currently producing 3-nanometre chips, the most advanced chips to date.
Samsung mainly produces its Exynos chipsets and although open to producing chips for others, does not receive as many orders as TSMC. This is because the latter's technology has always been recognised as the best. Unsurprisingly, the company sees no competitors in the near future, even in the face of Huawei, which has been actively developing its chip technology in recent years.
The restrictions imposed by the US have seriously affected Huawei's business. It is now largely confined to China and does not have access to the latest smartphone technology. Chinese semiconductor company SMIC supplies chips to Huawei. It uses outdated DUV equipment instead of EUV, so its chips are not as competitive as Qualcomm's Snapdragon, MediaTek's Dimensity and Samsung's Exynos.
However, supported by a government fund, Huawei is aiming for self-sufficiency with a sustainable domestic smartphone supply chain. Huawei is currently struggling to manufacture actual-sized chips, while TSMC and Samsung plan to start producing 2-nanometre chips as early as next year.
Huawei is convinced that a breakthrough in the semiconductor industry is inevitable. Competition is certainly fuelling the development of the market. However, whether anyone will be able to compete with TSMC will only become clear with time.
Source: Digi Times Asia
