Samsung Electronics and TSMC have always maintained a trend of catching up with each other, alternately ascending to the top of the semiconductor technology company’s throne, from process evolution, number of customers, market share ranking, capital expenditure, to the market value. All are being compared. According to analysts’ analysis, in terms of the foundry market share, TSMC is far ahead of Samsung Electronics’ 16.4% with 55.6%, but Samsung Electronics’ sales growth potential is far ahead of TSMC.
The magical 2020 has passed, and the brand new 2021 has arrived. 2020 has been an extraordinary year for all of us, and even more so for South Korean semiconductor giant Samsung. Let’s take a look back at some of Samsung’s biggest events in 2020.
2020 Samsung Events (1)
Chairman Lee Kun-hee dies
On October 25, 2020, Samsung Group Chairman Lee Kun-hee, who was considered to be the founder of Samsung’s rise, passed away at the age of 78. He has developed Samsung from a local company into a world-leading technology company, whose vision, leadership and courage can be imagined. His death is a heavy blow to Samsung, and what will happen to Samsung after losing Li Jianxi is also cause for concern.
Samsung Statement: His Legacy Will Be Eternal
And his son Li Zaiyong, who is regarded as Li Jianxi’s popular successor, has also had a very bad 2020. Due to the involvement of former South Korean President Park Geun-hye’s “confidence in politics” incident, the Seoul Central Court officially issued an arrest warrant against Lee Jae-yong in February 2017. After Lee Jae-yong was detained for about a year, the Seoul High Court sentenced him in February 2018. He was sentenced to 2 years and 6 months in prison, suspended for 4 years, and Lee Jae-yong was released immediately. On December 30, 2020, according to Yonhap News Agency, the case of Lee Jae-yong accepting bribes was finally heard in the Seoul High Court. The independent inspection team of the prosecution requested that Lee Jae-yong be sentenced to 9 years in prison. According to reports, the final verdict on Lee Jae-yong is expected to be made in early 2021. If Lee Jae-yong is indeed sentenced, it will definitely have a great impact on the development of Samsung.
2020 Samsung Events (2)
Samsung Electronics surpasses TSMC in market value
On December 24, 2020, Samsung Electronics’ market value reached US$475.1 billion, surpassing TSMC’s US$470.1 billion and regained its position as the market value leader in the global semiconductor industry. This is also the first time that Samsung has surpassed TSMC in market value since July 17, 2020. Of course, Samsung Electronics has a wide range of businesses. In addition to semiconductors, there are many other businesses, but in recent years, semiconductors have clearly become Samsung Electronics’ most important business and one of its main sources of profits.
This pair of competitors has always maintained a trend of chasing after each other, alternately ascending the throne of semiconductor technology companies, from process evolution, number of customers, market share ranking, capital expenditure, to market value are being compared. . According to analysts’ analysis, in terms of the foundry market share, TSMC is far ahead of Samsung Electronics’ 16.4% with 55.6%, but Samsung Electronics’ sales growth potential is far ahead of TSMC.
Previously, TSMC announced the establishment of a 5-nanometer chip production line in Arizona, USA, which is expected to be put into production in 2021. Samsung is not behind, and subsequently announced that it will expand its semiconductor factory in Texas, the United States, the area will be expanded by about 40%, and it is ready to introduce the most advanced foundry production lines. According to industry analysts, if Samsung wants to challenge TSMC’s absolute lead in the foundry field, it must obtain orders from Apple and Intel, and setting up factories in the United States may help Samsung win some orders from these large American factories. Slowly narrow the distance between TSMC and TSMC.
2020 Samsung Events (3)
Samsung phone sales hit a nine-year low
In 2020, Samsung launched several flagship smartphones, including the Galaxy S20 and Galaxy S20 Ultra, as well as the Galaxy Note 20 and Note 20 Ultra, all of which have received a good market response. In particular, the smartphone business of Huawei, its biggest smartphone rival, has been hit hard under the U.S. ban, making it a good time for Samsung to expand the smartphone market. However, although Samsung’s smartphone shipments have returned to the world’s No. 1 throne, according to the “Global Quarterly Shipments of Smartphone Brands” data report by market research firm Canalys, in the third quarter of 2020, Samsung shipped 80.2 million mobile phones. It is far ahead of the second-ranked Huawei. However, according to a report by Korean media on December 24, Samsung Electronics’ smartphone shipments in 2020 will not rise but drop, or 270 million units. This is also the first time since 2011 that Samsung’s smartphone shipments have fallen below 300 million.
The epidemic is the main reason why Samsung’s smartphone sales fell below 300 million. Although Huawei was sanctioned by the United States in 2020 and released a part of the global market, it seems that Samsung did not divide up this part of the market, but was acquired by several major domestic smartphone manufacturers, including Xiaomi, OV, etc. In some developing markets, Samsung has also been surpassed by domestic mobile phone manufacturers. For example, in India, according to IDC statistics, four of the five mobile phone brands with the largest online sales in India are Chinese brands, and Xiaomi ranks No. 1 One, Samsung is in second place. In developed markets, such as the European market, domestic mobile phone brands are also actively deploying. After acquiring a part of the market released by Huawei, it is bound to have a positive contest with Samsung.
With smartphone sales declining in 2020, Samsung’s forecast for 2021 is also not optimistic. Although the industry forecasts that its smartphone sales will exceed 300 million units, Samsung has set a sales target of 298 million units. It is reported that Samsung will launch a folding machine in 2021. I don’t know what the market response will be at that time. If the folding machine can become a new fashion trend, it will be a big opportunity for Samsung, after all, Samsung occupies the mobile phone screen field. Absolute leadership.