Despite TSMC's dominant market share in the contract chip manufacturing industry, a surprising report from a Wall Street research firm highlights Samsung Foundry as the top alternative to TSMC. The $16.5 billion deal with Tesla is seen as a potential turnaround for Samsung Foundry, which has struggled with low yields and market share.
Exploring Samsung Foundry's potential as a viable alternative to TSMC
The report discusses Samsung Foundry's recent deal with Tesla for producing AI6 chips and evaluates the impact on Samsung's revenue and profitability. The research firm notes that Samsung Foundry's fab in Taylor, Texas, could significantly benefit from the deal, potentially increasing revenue by 30% to 40%.
While Intel has been considered a potential rival to TSMC, its struggles with external customers and market share have raised doubts about its competitiveness. The report suggests that Samsung Foundry is better positioned than Intel to be a viable alternative to TSMC in the semiconductor industry.
Overall, the research firm asserts that Samsung Foundry is the only logical choice for tech companies seeking an alternative to TSMC, especially in scenarios where TSMC faces capacity limitations or other constraints.
