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The chip foundry market is fiercely competitive, and TSMC has mastered the most advanced chip manufacturing technology, so it has a global market share of 6 percent in the foundry field, while Samsung only has a market share of just over 1 percent, and there is a huge gap with TSMC. Samsung, who is unwilling to remain silent, released a "big move" to dig into the corner of TSMC, and the chip price war began?
Samsung digs into TSMC's corner
Samsung Electronics has always had a strong reputation in chip manufacturing. They have advanced manufacturing processes and equipment, and cooperate with major chip manufacturers around the world. However, TSMC, as the world's largest semiconductor foundry, also has strong competitiveness in the field of chip foundry.
TSMC has advanced manufacturing processes and technologies and is able to meet the needs of its customers. TSMC is also actively engaged in research and development to continuously improve its technical level and production capacity.
During the global chip shortage, TSMC received soft orders and repeatedly hit new sales highs. Samsung is naturally very envious in its eyes, but customers are looking for TSMC to cooperate, and its chip yield is not as good as TSMC, what should I do? Samsung's strategy is to reduce prices.
According to the news that came out, Samsung adjusted the foundry quotation for the first quarter of 2024, offering a discount of 5% to 15%, and will also set a more favorable price according to the situation of chip orders.
Samsung's purpose in doing this is obvious, that is, to dig into the corners of TSMC and snatch customer orders from TSMC, Samsung is seeking cooperation from Qualcomm, AMD, Nvidia and other customers, hoping to get more order support. As for the effect, it depends on the customer's decision.
This competitive strategy may put some pressure on competitors such as TSMC, as customers may be more inclined to choose suppliers with more competitive prices. Samsung's chip foundry technology is also world-leading, although there is a gap with TSMC, but if TSMC is fully loaded, it will also affect the customer's chip delivery time.
And looking for Samsung foundry, you can get low prices and fast delivery.
The chip price war has begun?
It is not only Samsung that is engaged in a low-price strategy, in fact, TSMC also has ideas to adjust the price of chip foundry. It is reported that TSMC intends to provide a discount of 5% to 10% for 7nm, and the discount for mature processes will also be about 2%. Because TSMC's 7nm capacity utilization rate continues to decline, the price reduction will also be higher.
It can be seen that Samsung and TSMC are both adjusting chip foundry prices, which indicates that the competition in the chip foundry field is escalating, which may mean the beginning of the chip price war.
Reducing the price of chip foundry is a strategy to attract more customers and orders, and it is also a way to respond to market demand and competitors. Both Samsung and TSMC are looking to increase their market share and remain competitive in the highly competitive foundry market by cutting prices.
Price wars are good for consumers because they can buy more affordable things for less. However, in the long run, the price war will affect many small and medium-sized manufacturers, once small and medium-sized manufacturers also participate in the price war, and when the market order is restored in the future, it will not be so easy to increase pricing.
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