TSMC Building Semiconductor Factory in the US... Samsung Foundry on Edge

Samsung Electronics Foundry Factory

[Asia Economy Reporter Dongwoo Lee] As Taiwan's TSMC, the world's largest semiconductor foundry (contract manufacturing) company, plans to build a state-of-the-art semiconductor factory in Arizona with support from the U.S. government, concerns are emerging that demand from Samsung Electronics' major U.S. customers such as Intel and Qualcomm may decrease.

According to major foreign media on the 17th, the TSMC factory aims to be completed by the end of 2023 with support from the U.S. government and the Arizona state government. The specific support methods have not been disclosed.

The industry expects that the products TSMC will manufacture at the U.S. factory will be semiconductor chips featuring "5-nanometer transistors." This is because Qualcomm and Intel, key customers in the foundry market, are expected to increase production volumes of premium 5-nanometer semiconductor chips in the future.

TSMC began producing 5-nanometer chips in Taiwan from the end of last year, and Samsung Electronics is preparing to establish a production line for mass production in the second half of this year.

The industry predicts that with TSMC's establishment of a U.S. factory, the market share gap in the foundry business between Samsung Electronics and TSMC could widen further. According to market research firm TrendForce, in the fourth quarter of last year (October to December), TSMC's market share in the foundry market rose to 52.7%, while Samsung Electronics remained stagnant in second place with 17.8%.

There are also expectations that Samsung Electronics will accelerate additional investments in the U.S. as it is strengthening its foundry business to achieve the world's number one position in system semiconductors by 2030.

Samsung Electronics currently operates a foundry factory in Austin, Texas, U.S., and it is known to have secured nearby land with the goal of expanding the factory. Since it aims to be number one in system semiconductors, it is explained that Samsung can focus on U.S. investments and attracting local customers.

This content was produced with the assistance of AI translation services.