Samsung chip foundry business declines in Q1 2020

Samsung brand

Samsung Electronics released its first-quarter financial report today. According to the company, its chip foundry business’s first-quarter performance declined. Samsung’s chip foundry business saw a slight decline in earnings in the first quarter, as Chinese customers’ demand for high-performance computing chips declined.


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Samsung Electronics said it will strengthen EUV (Extreme Ultra-violet) leadership in the second quarter and begin mass production of 5nm products. The company also said it will focus on the GAA 3nm process. In the chip foundry business, Samsung Electronics currently ranks second (2019). TSMC ranks first with a market share of 52%. TSMC also mentioned earlier this month that the 5nm process will begin mass production in the first half of 2020.

Regarding the 3nm process technology, the chip density is way higher than the 5nm process. In addition, it also consumes less power than its predecessor. TSMC’s R & D team focuses on basic process formulation, yield improvement, transistor, wire performance improvement, and reliability assessment. According to the company, it will continue to carry out a comprehensive development of 3nm process technology.

TSMC has also commenced the development of 2nm technology. Furthermore, its R & D team is already looking into processes below 2nm. Regarding the competition between TSMC and Samsung Electronics, Zhang Zhongmou, the founder of TSMC, once said that Samsung Electronics is a strong opponent. Currently, TSMC is temporarily dominant, but the war between TSMC and Samsung is definitely not over.

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