Analysts pointed out that the semiconductor market, Samsung (Samsung) has broken from the foundry market leader TSMC (TSMC) dominate – TSMC recently published in the first quarter of 2015, shortly after earnings, analysts predict that, with TSMC’s most profitable several process nodes, including major customers 28 nm to 16 nm, such as Qualcomm (Qualcomm), MediaTek (MediaTek), Apple (Apple), Nvidia and Marvell, turned to seek Samsung or other foundries as The second chip supply sources, TSMC fear of losing pricing power this year.
“Because of Samsung’s 14 nanometer yield has reached Qi Cheng, TSMC dominant situation in the foundry market has been broken;” Susquehanna International Group analyst Mehdi Hosseini said: “Samsung’s performance in the 14-nm node has been comparable to TSMC and can provide a lower per wafer average price. “In addition Hosseini pointed out that Samsung has made bargaining power with Qualcomm, MediaTek and Marvell other chip industry, as these chip industry is negotiating to enter the Samsung ready to launch in 2016 The new series of mobile phones; Samsung have more motivation to make use of its mobile phone chip design industry has won the case, as the chip foundry business exchange orders.
TSMC recently said it would speed up the 16-nm process mass production speed, while reducing the capacity of 20 nanometers; BNP Paribas (BNP Paribas) analyst Szeho Ng said TSMC’s 16 nanometer and 10 nanometer progress than expected increase, because anxious to consolidate their market leadership: “accelerated 10-nanometer manufacturing process development, after TSMC 16/14 nm node means losing dominance status, desperate to regain the lead; but we expect to go to 10 nanometers for the company to begin by the end of 2016 bring in revenue. ”
Ng further stated: “We recently accelerated from TSMC 16 nanometer FinFET process expanded to attract more orders Apple has made some clues A9 processor; however A9 can also use Samsung’s 14 nm FinFET process of production, if the process for the expansion of Samsung and Pricing more active, TSMC will be a risk. “In addition to Apple, TSMC customers another heavyweight Qualcomm Snapdragon 820 is also possible to switch to Samsung’s production;. Ng believes that because the TSMC foundry market dominance in precarious, The company may need to take price-cutting strategy.
Smartphone market growth slowed down, 28-nanometer process all competitors
The analysts also pointed out that, as the largest thrust TSMC business smartphone market growth has slowed down, it also brings worries for the company. “It is estimated 2015 global smartphone market volume growth rate of 13%, the figure was 23 percent in 2014;” The market research firm GFK report released in February, said: “2015 smart phone market growth slowing The main reason is the development of the market has reached saturation. ”
HSBC Bank (HSBC) analyst Stephen Pelayo said TSMC annual revenue from the previous seven customers in 2012-2014 between about 27 to 32 percent growth per year, TSMC’s total revenue contribution of approximately 38 to 44%; this During the segment TSMC just catch the smartphone boom, the market could reach an annual growth rate of 30 to 45 percent. TSMC before he listed seven clients including Qualcomm, Apple, Broadcom (Broadcom), MediaTek, Nvidia, Altera and Xilinx, but these customers the performance of this year’s revenue growth forecast only flat.
There are other worries that TSMC is now facing the threat of competitors have entered the market of 28-nanometer process technology node ── the past five years has not challenging. French BNP Paribas analyst Ng said: “This is the first time may have to stop TSMC’s 28-nanometer process extension, because of competition from other foundries increasingly intense, including UMC (UMC), Global Foundries, and Semiconductor Manufacturing International (SMIC) . “which UMC’s 28-nanometer manufacturing process yields continue to improve, but also to expand production capacity; this Bernstein senior analyst Mark Li said:” We expect TSMC will face the loss of market share and pressure on prices in the 28-nanometer process market. ”
TSMC has publicly expressed on many occasions, the company expects to acquire market share advantage in the next year to 16 nanometer and 14 nanometer node market; this may be expected from TSMC 16-nanometer chips FinFET process developed fan-out package (fan-out packaging) technology. According to Fubon Securities (Fubon Securities) analyst Carlos Peng said, including Apple, Qualcomm and MediaTek has dedicated team to support TSMC fan-out package technology launch.
“We expect these companies will continue to be published in the second half of 2016 using the fan-out package of the first products, locking high-end market, and to promote the growth of related supply chain;” Peng said: “The three companies will be TSMC fan-out style Major customers manufacturing process; we expect this integrated fan-out type (integrated fan-out, InFO) packaging technology will begin in the third quarter of 2016, in order to bring a sense of TSMC’s revenue and become the future of the new growth engine. “