Top 10 semiconductor companies by market share
Semiconductors are an essential component of the microchips that power virtually all modern electronic devices. As the objects around us become “smarter” and the demand for electronics grows around the world, the demand for semiconductors will continue to skyrocket.
So which companies currently make these chips and where are they located?
The infographic above uses data from TrendForce to break down the top 10 semiconductor companies by country and market share.
The largest semiconductor companies
Before diving into companies, it’s important to get context on your business. Also known as foundries, these semiconductor companies specialize in the manufacturing or production of chips. “Fabless” chipmakers (companies that design their chips and supply hardware but don’t have manufacturing plants) outsource chip production to foundries, mostly in Asia.
Taiwan, China, and South Korea combine for about 87% of the world foundry market. This is how it breaks down:
|Samsung||17%||South Korea 🇰🇷|
|hh grace||one%||Chinese 🇨🇳|
|DB HiTek||one%||Chinese 🇨🇳|
|tower semiconductors||one%||Israel 🇮🇱|
TSMC, short for Taiwan Semiconductor Manufacturing Company, is by far the world’s largest chipmaker. It is also the sixth most valuable company in the world with a market capitalization of more than $600 billion and supplies chips to the likes of Apple, Intel and Nvidia.
TSMC and Samsung are the only companies capable of producing today’s most advanced 5-nanometer chips for iPhones. However, the Taiwanese company is one step ahead and is ready to produce its 3-nanometer chips in 2022, offering the most advanced foundry technology.
Other companies on the list include China’s largest chipmaker SMIC, one of 60 Chinese companies blacklisted by the US in 2020. At the country level, Taiwan represents 63% of the foundry market, followed by South Korea with 18%. In both countries, most of the market share belongs to a single company.
The Semiconductor Shortage of 2021
With the adoption of 5G devices and other new technologies, the chips have been in high demand.
While pandemic-induced shutdowns have hampered supply, demand for chips has continued to rise as economies reopen. The resulting chip shortage has rattled several industries with lead times: The gap between the time a semiconductor is ordered and the time it is delivered is at a record level of 22 weeks.
The chip shortage is a boon for semiconductor companies, but downstream companies are struggling. Global automakers are poised to make 7.7 million fewer cars in 2021, which translates into a $210 billion blow to your income. Consumer electronics has also taken a hit, with popular products like the Playstation 5 console in short supply.
New chip factories take years to build, as well as billions of dollars. With many analysts expecting the shortage to last until 2023, it will be interesting to see how chipmakers respond, especially if demand continues to rise.