South Korean company Samsung Electronics tried to win contracts to package new 3nm chips, but lost to Taiwan’s TSMC, a major semiconductor company. The newspaper writes about it Business Korea.
One of the reasons for the defeat is that TSMC has an exclusive contract to make Nvidia chips thanks to its packaging technology called Chip on Wafer on Substrate (CoWoS).
According to the publication, chips for artificial intelligence technologies require advanced packaging technology, as some parts become several times smaller than the thickness of a human hair during the manufacturing process. So far only TSMC has such capabilities.
As a result, Nvidia, Apple and AMD cannot produce their core products without TSMC and packaging technologies.
“This unrivaled packaging technology explains why global IT giants like Nvidia and Apple still want to use TSMC’s production lines, even though Samsung Electronics managed to start mass production of 3nm semiconductors before TSMC in 2022,” the article states.
As a result, the market share gap between this TSMC and Samsung is growing in favor of the Taiwanese tech giant.
Korean Business concluded that TSMC finally showed a desire to win the competition with Samsung when it launched its Fab 6 semiconductor manufacturing facility specializing in high-end packaging on June 8. However, Samsung is still determined to develop new packaging options that will allow the company to regain market share.
formerly Samsung stoped To be the world’s largest chip manufacturer.