The share price of Semiconductor Manufacturing Company surged by 63% in the second half of 2020, but Samsung Electronics, as an integrated device manufacturer (IDM), has performed better in the market with its diversified investment portfolio.
Tencent Technology News on December 29, according to market value calculation, South Korea's Samsung Electronics has surpassed TSMC to become the world's most valuable semiconductor company.
According to the closing price on December 24, Samsung Electronics has a market value of 52.4 billion won (approximately US$475.1 billion). This means that it has surpassed TSMC (approximately US$470.1 billion) and regained its position as the world's leading semiconductor industry. This is the first time that Samsung Electronics' market value surpassed TSMC in more than five months since July 17.
TSMC’s stock price soared 63% in the second half of 2020, but Samsung Electronics, as an integrated device manufacturer (IDM), has performed better in the market with its diversified investment portfolio. Samsung Electronics' stock price is getting a boost from the rebound in memory semiconductor prices and the strong performance of its foundry business. Many people also predict that Samsung Electronics' flagship DRAM will enter another "super cycle" in the first quarter of 2021.
In 2020, the global semiconductor industry structure has undergone major changes. In terms of market value, Intel dropped from third to fifth with 192.9 billion US dollars, while Nvidia, which specializes in graphics processing units (GPU), grabbed third place with a market value of 321.7 billion US dollars. Semiconductor equipment giant ASML of the Netherlands also surpassed Intel, ranking fourth with a market value of US$202.5 billion.
Samsung Electronics’ foundry business is considered to be the main driving force behind the South Korean technology giant’s market value exceeding 500 trillion won . In 2020, this chip maker won a large order from Qualcomm to produce its latest AP Snapdrag 888 using its 5nm manufacturing process. In addition, Samsung has also received orders from Nvidia to produce graphics processing units (GPU).
Analysts said that in terms of market share, TSMC is far ahead of Samsung Electronics with a share of 55.6% . Samsung Electronics has a market share of approximately 16.4%, but the company is in a leading position in terms of sales growth potential.
The prospects for industry and business in 2021 are even brighter. With the growth of the 5G mobile communications and AI markets, orders for 5G communications chips and GPUs from companies without factories have flooded in. Foundry companies are busy snapping up orders, so orders are even backlogged until the end of 2021. Market experts predict that factory sales in 2021 will increase by more than 20% from the 15.4 trillion won (approximately US$14.1 billion) estimated in 2020.