NEW DELHI and LONDON and HONG KONG and SAN DIEGO and Seoul, South Korea, July 6, 2022 /PRNewswire/ — Global shipments of smartphone chipsets (SoC/AP+Baseband) were down 5% year-over-year in the first quarter of 2022 due to seasonality, weaker demand in China amid lockdowns and excessive shipments from some chipset vendors in Q4 2021, according to the Counterpoint Chipset Foundry and Tracker. TSMC, the world’s largest foundry, has captured nearly 70% of the manufacturing share of key chipsets going into smartphones, from complete system-on-chips (SoCs) to discrete application processors (APs) and cellular modems. Samsung Foundry was the second largest foundry behind TSMC, capturing a 30% share.
Commenting on the foundry landscape for the smartphone segment, Senior Research Analyst, Parv Sharma said, “Foundries are extremely high CAPEX, high-tech companies that have led to a duopoly for the manufacturing of advanced chipsets for smartphones. TSMC and Samsung Foundry together control the entire smartphone chipset market, and TSMC is more than twice Samsung in terms of manufacturing scale and market share.
“TSMC-based smartphone chipsets declined by 9% annually in the first quarter of 2022. Due to Samsung Foundry’s choice of Qualcomm to manufacture the X60 baseband and lower annual shipments of MediaTek smartphone chipsets The rise of 4nm flagships from Qualcomm, Apple and MediaTek will allow TSMC to further gain market share in the smartphone chipset in 2022.
“Of the total number of smartphone chipsets on advanced nodes (4nm, 5nm, 6nm and 7nm), TSMC has captured 65%. TSMC has entered mass production for its main 4nm process node with MediaTek’s Dimensity 9000 SoC in Q1 2022. TSMC’s 4nm node-based smartphone chipset shipments are expected to increase further thanks to Qualcomm’s dual-sourcing strategy for its upcoming Snapdragon 8+ Gen 1 4-based SoC nm.”
Commenting on the performance of Samsung Foundry, Senior Analyst Jene Parksaid: “Samsung Foundry captured around 30% of global smartphone chipset shipments thanks to Qualcomm and Samsung Semiconductor’s internal Exynos chipset division.) smartphone chipset shipments with a 60% share, followed by TSMC which captured a 40% share in the first quarter of 2022.
“However, the uncertain global macroeconomic climate, potential inventory corrections and Qualcomm’s dual sourcing could put pressure on Samsung Foundry’s overall market share as well as major nodes.”
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SOURCE Research in counterpoint