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Competitors will have to invest $ 30 billion over five years to get closer to TSMC and Samsung
Taiwan-based TSMC already controls more than half of the semiconductor contract manufacturing market and will increase capital expenditures to a record $ 28 billion this year. Samsung Electronics is trying to keep up with investments, so experts believe that it will be difficult for all other players to catch up with the two leaders.
Image source: TSMC
Even in the face of tougher US sanctions from the Chinese direction, statements continue to be made about China’s intentions to become one of the leading powers in the production of semiconductor components in a few years. IC Insights specialists determined that TSMC and Samsung Electronics, due to their high rates of investment in lithography, will only increase their technological gap from competitors in the coming years.
Until 2021, Intel regularly ranked among the top two semiconductor manufacturers in terms of capital expenditure, but ceded leadership to Samsung Electronics in 2021. Since 2021, it was ousted from the second place by TSMC, and now Samsung will have to compete with the Taiwanese manufacturer. Samsung has increased its investment intensity since 20021, spending $ 93.2 billion over the next three years — twice as much as all Chinese companies in the same period. Last year Samsung invested $ 28.1 billion in research and production expansion, this year it will spend at least.
Capital expenditures of TSMC and Samsung this year should form 43% of the core expenditures of the entire semiconductor industry, according to IC Insights experts. The same Chinese companies would have to invest $ 30 billion annually over five years to only get closer to the level of technological development of these two leaders. And now it is already becoming clear that money alone cannot solve the problem, because the United States in every possible way hinders the progress of the Chinese semiconductor industry through sanctions restrictions.