web analytics
Home » Technology » Samsung » Samsung could benefit from TSMC’s higher US chip prices

Samsung could benefit from TSMC’s higher US chip prices

TSMC is the only competitor to Samsung in the semiconductor chip manufacturing segment. It holds a big market share in contrast to Samsung Foundry.  It has contacts with all the big names in the industry like Apple, and MediaTek. Nvidia, AMD, and Qualcomm. In contrast, the South Korean tech company is losing customers.

TSMC could charge higher for its 4nm and 5nm chips manufactured in the US

In the near future, TSMC will begin producing semiconductor chips in its first chip factory in the US. However, it is reported that the N4 (4nm) and N5 (5nm) semiconductor chips produced at this plant will be 30% more expensive than those produced in Taiwan. Chip manufacturing orders are already being discussed by TSMC with its customers, who are also negotiating its new pricing. Its US chip plant is anticipated to start producing chips in 2024.

Additionally, TSMC has a chip manufacturing facility in Kumamoto, Japan, where it will produce chips in the 12nm, 16nm, 22nm, and 28nm nodes. According to some rumors, chips produced at the TSMC plant in Japan will cost 10% to 15% more. According to all of these sources, Samsung Foundry may benefit since it can provide rival chip contracts at prices cheaper than TSMC and may be able to pull some customers away from TSMC.

Recently, it was reported that Samsung could get some orders from Google and AMD to produce 4nm chips. The company could provide Google with Tensor G3 and AMD with next-gen CPU and GPU made on its improved 4nm process. The improved 4nm technology by Samsung now offers better efficiency and performance.