The Processor Wars: Where Are We Headed in 2024?

Major global companies in the semiconductor and digital processor manufacturing industry are fiercely competing to dominate the electronic chip market. When researching a new device for purchase, one of the most crucial criteria is often the power of the processor used in the device. The quest for high performance and power in modern devices is intense, given the multitude of companies dealing with processors in the technology, smartphone, and computer sectors. This article highlights some of the prominent players in this competition, with a focus on TSMC, the leading semiconductor manufacturing company.

What is TSMC?

TSMC, or Taiwan Semiconductor Manufacturing Company, is a Taiwanese company that manufactures processors and electronic chips for some of the most well-known and widely used devices globally. Many devices, including the one in front of you right now, may heavily rely on TSMC's products. The company's manufacturing capabilities have a significant impact on various industries, including technology, smartphones, and computers. Some notable clients of TSMC include Apple, AMD, Nvidia, Qualcomm, Intel, and Huawei.

TSMC was founded in 1987 in Hsinchu City, Republic of China, initially focusing on semiconductor manufacturing. Its success can be attributed to the widespread use of mobile phones and their increasing dependence on internet services, requiring advanced processors. Noteworthy clients such as Apple, AMD, Nvidia, Qualcomm, Intel, and Huawei contribute to TSMC's prominence.

Chip War Between China and America:

The U.S. holds a 95% share of the global semiconductor and technical processor market, thanks to its development of modern technologies using artificial intelligence. Tensions have arisen between the U.S. and China due to the former's decision not to export advanced chips to the latter. This decision, starting with former President Donald Trump's ban on dealing with the Chinese company Huawei, has led to reciprocal restrictions and challenges between the two countries in the semiconductor domain.

Prominent Processor Manufacturing Companies:

1. Intel: Widely known as the "blue giant," Intel is a globally renowned company in the manufacturing of modern processors for desktop and laptop computers. Despite facing recent manufacturing and supply challenges, Intel continues to play a crucial role in the industry, with some reliance on TSMC for manufacturing.

2. AMD: A fierce competitor to Intel, AMD has been relying on TSMC for manufacturing its chips and graphics processors. This strategic move has allowed AMD to outperform Intel recently due to TSMC's efficient manufacturing capabilities.

3. Apple: Known for producing powerful processors, especially for its devices, Apple ensures longevity and efficiency in its products. The company relies on TSMC for manufacturing its A-series processors used in iPhones and iPads.

4. Nvidia: A dominant player in manufacturing graphics processors for various computers, Nvidia initially used TSMC for its RTX 3000 series processors based on the Ampere architecture. However, due to TSMC's limited manufacturing capacity, Nvidia has shifted some of its production to Samsung.

5. Qualcomm: A significant player in producing processors for mobile phones, Qualcomm relies heavily on TSMC for manufacturing its mobile processors.

Statistics:

As of 2020, TSMC holds a dominant position in the processor market, with a 54% share of the global semiconductor foundry market. The company's commitment to advancing its manufacturing capabilities is evident as it aims to transition to producing 3nm processors by investing billions of dollars.

Conclusion:

TSMC stands as the predominant force in the world of processors, chips, and semiconductors. Being a U.S.-affiliated company, TSMC's role has impacted China significantly due to U.S. restrictions on chip exports. Major processor manufacturing companies now heavily rely on TSMC, raising the question of whether a formidable competitor will emerge and how much time it would take for any company to surpass TSMC's current status in processor development and capabilities.