The front desk for TSMC announced early in the second quarter of this year's earnings, revenue reached $2.3 billion, 5.2% higher than the industry expected, and take advantage of an opportunity to improve capital spending this year, from the original estimate of $90 to $10 billion to $95 to $10.5 billion, are constantly strengthen its competitive advantage in the semiconductor foundry market.

The state of competition semiconductor foundries

According to Gartner, released in 2015, the top five in revenue large semiconductor foundries are TSMC, Romania, umc, samsung and smic, market share of 54.3%, 9.6%, 9.3%, 5.3%, 9.3%.

In terms of technology, smic's most backward, and now just 28 NMHKMG successful mass production process.

Umc as early as 2014 the mass production process is advancing its 14 nm process, its intended to mass production as soon as possible the advanced technology to be introduced by the end of the xiamen factory 28 nm process for Chinese companies to the nearest service to compete with smic.

, Romania, over the years with umc for the position of the second contract, but in fact it poor situation, consecutive years of losses it makes the enterprise's uae ABU dhabi's advanced technology investment co (ATIC) unbearable, coupled with the fall in oil prices over the past few years the uae's abundant nor have repeatedly intends to transfer the business from last year to buy a samsung 14 nm process mass production, but it could not escape the fate of the sell off.

Samsung's share of the semiconductor foundry market while only 10% of TSMC, however it's exactly what was for TSMC poses the biggest threat, after 14/16 nm technology to power semiconductor dominant, the two sides are now 10 nm and contested on 7 nm process.

Samsung and TSMC

Samsung relies on the advantage of the whole industry chain, it is the world's largest mobile phone companies, is also the most complete of global mobile phone industry chain enterprises, more than forty percent of market share of global DRAM market.

In semiconductor sales ranking, samsung is second only to semiconductor boss Intel company, both in 2015 revenue was $37.85 billion, $51.69 billion, respectively, the market share of 11.3%, 15.4% respectively, according to Gartner data).

Early samsung through the design and development for apple mobile processor into semiconductor foundry market, then apple bought P.A.S emi company developed A system after phone processor continue by samsung foundry, samsung also insist on developing its own mobile processors at the same time, the driving the development of it in the semiconductor foundry market.

On 20 nm technology, samsung competition failed, apple's A8 is TSMC robbed, but on the 14/16 nm process prior to TSMC electricity production win the opportunity to share the apple A9 processor orders.

TSMC currently production of 16 NMFF + 14 nmfinfet process with samsung at the same level, but last year there were analysis refers to the energy efficiency in the production of apple A9 processor than the former, the upcoming release of apples this year iPhone7 the A10 processor is said to have all won by TSMC adopts 16 NMFF + production process.

Samsung has snatched it from TSMC hand big client qualcomm for a long time.

Due to 20 nm TSMC process performance and its priority of apple's reason lead to qualcomm Xiao dragon 810 fever, qualcomm flee away from TSMC chose samsung, qualcomm's high-end chip Xiao dragon 820 samsung 14 nmfinfet process.

Samsung and TSMC are in the fight for the end of the production of 10 nm process, however, TSMC has more customers. The industry generally believe that apple, mediatek and huawei haisi can use 10 nm TSMC process, the samsung 10 nm process customer is samsung and qualcomm chip.

Samsung is focused to develop 7 nm technology, intended to steal apples on the process of this part of the customer orders, have take the lead in the introduction of extreme ultraviolet (EUV) equipment (which is regarded as the key to the development of 7 nm process equipment).

TSMC has certainly not lax, continue to achieve high growth in revenue hit a new high, just the estimated capital spending this year of ascension is its history's highest peak, which is close to 67% of the samsung capital spending $15 billion this year, but the capital expenditure to samsung mobile phone development should be considered other business, such as semiconductor r&d money may not as good as TSMC, two on the 7 nm technology competition is difficult to say who will win.

The influence of the China factor

China is the world's largest chip market, buying chips accounted for about half of the world.

China has launched a $20 billion fund to promote the domestic IC industry's chip industry development, grow up huawei haisi, spreadtrum global top ten chip design companies, such as the promising TSMC and umc semiconductor foundry to enter the mainland market to nearby for these customer service win the market.

TSMC has just held the foundation stone laying ceremony of nanjing factory, is expected to begin in 2018, with 16 nm process. Umc, as described above the xiamen factory in this year put into production or the introduction of 28 nm process.

Smic this with the help of local advantages, continue to gain support from local customers, but in TSMC and umc to enter the mainland market construction under the condition of the factory, it will face more intense competition.

But get government support it financially now don't need to worry too much, at the same time it by joint venture with qualcomm, huawei haisi large customers such as the way to enhance its own technology research and development advantages, in collaboration with Belgium microelectronics research center (IMEC) introduction of new technology to accelerate the process of research and development, but it seems it will behind these competitors in technology research and development.

On the whole, TSMC has the strongest competitive advantage, the outlook, samsung is relying on the advantage of collectivization to continue efforts to become a challenger TSMC. Umc and smic hope is high-speed growth of China's market development opportunities, but now TSMC also in the case of positive to enter the Chinese market for the two companies bring about many negative impacts.