As the world becomes more digital, devices are now assisting us to carry out our daily activities. Therefore, semiconductor chips are becoming smarter, faster, and smaller. This makes it easier to carry out analog tasks digitally. Cars are becoming electric, humans activities are carried out digitally, and commerce is becoming digital
Semiconductors play a key role in the technology world and the modern economy at large. These very tiny electronic circuits are the brain of millions of devices. Even the most powerful and most advanced device features semiconductors. Machines and devices like space vehicles, medical equipment, car computers, and smartphones among others feature semiconductors. As the use cases of semiconductors continue to increase, the manufacturing of semiconductors keep improving and manufacturers keep prospering.
The semiconductor chip industry is indeed a competitive one as semiconductor chip manufacturers keep producing faster, smaller, and more powerful semiconductor chip. Semiconductors are in four primary categories which include commodity integrated circuits, microprocessors, systems on a chip, and memory chips. The semiconductor industry keeps growing at a gradual pace since the advent of the microchip. Here, we will have an indepth study of the semiconductor industry and the manufacturers there.
What are the Functions of a Semiconductor Chip?
A semiconductor chip serves as the foundation for electronic devices. This chip is also known as microchip or integrated circuit. It is usually made from materials like silicon or germanium. Semiconductor chips are known to play a crucial role in the manufacturing of electronic devices. Therefore, these chips are an important aspect of our daily lives.
The semiconductor technology has experienced developments and growth for the past 50 years. This growth and development have resulted in the manufacturing of more reliable and powerful electronic devices. A semiconductor chip features many transistors. This chip is around us. It is available in the computer used in conducting businesses, the mobile phones used in communicating, and the vehicles that transport us from place to place.
Also, these chips are available in the machines that treat diseases, the electronic gadgets we use in playing games, and more. Semiconductor chips don’t just make it possible to produce these electronic devices, they are responsible for the compactness and functionalities of these devices.
Which Industries Integrate Semiconductors?
Semiconductor chips are widely integrated across several industries. A lot of industries rely on this small and powerful chip. Examples of these industries include:
Telecommunication
Semiconductor chips control the functions of telecommunication devices. A wide range of technologies rely on telecommunication semiconductors.
The washing machine, refrigerator, air conditioner, and microwaves in our homes feature semiconductor chips. These chips control timers, temperatures, and other parameters.
Healthcare
Semiconductor chips are available in machines used in the healthcare system. These machines have reduced the risk associated with surgeries. Also, they have made surgeries safer since they operate with a high level of precision.
Computing
Microchips are widely integrated in computers. Based on the chip type, a semiconductor chip makes use of binary code to carry out the commands you give.
Top Semiconductor Chip Manufacturers
TSMC
TSMC is an abbreviation for Taiwan Semiconductor Manufacturing Co. Ltd. This semiconductor chip manufacturer is highly ranked among the best semiconductor foundry in the world. With a market cap of $400.1 billion and net income of $30.53 billion, this company produces powerful and small semiconductor chips.
TSMC produced the 5-nanometer processed chips. The demand for these chips increased in applications for 5G and computing devices. Taiwan Semiconductors received 2,807 patents only in the U.S. This slightly falls behind Intel. Since 1994 TSMC has experienced rapid growth, with a 17.4% compound annual growth rate (CAGR) in revenue.
Taiwan Semiconductors works with more than 50,000 employees. This semiconductor manufacturer produces more than 10 million semiconductor wafers every year. Some devices feature semiconductors produced by TSMC. These include Apple products. Apple is one of the customers of TSMC. The majority of TSMC’s clients in Europe are automakers. In 2021, Taiwan revealed plans to increase their capacity by investing in a huge plant in Japan. This plant will cost a whooping $7 billion.
Micron Technology Inc
This is an American-based semiconductor chip manufacturer. As a prominent semiconductor manufacturer in the U.S, this manufacturer offers high quality memory chips and re-writable disc storage solutions. Micron’s semiconductors are widely used in communications, computers, servers, automobiles and consumer electronics.
Micron is a global leader and manufacturer of memory chips. Also, this semiconductor manufacturer has experienced a large increase in the demand for its semiconductors. Its memory chips are widely used in 5G networks and cloud computing. This manufacturer’s major target is the memory aspect of the semiconductor market.
With its headquarter in Boise, Idaho, Micron produces advanced semiconductor chips. As one of the few companies that supply memory products, Micron ensures it operates in an oligopoly where there are barriers to entry as regards capital expenditures and technological requirements. The core offering of Micron is DRAM. However, the demand for DRAM has reduces since Cloud solutions gained popularity among people.
Samsung Electronics
Samsung Electronics offer semiconductor solutions which include processors, DRAM, SSD with various portfolio of modern technologies. This company revealed its plans for 2025. According to Samsung, it will start manufacturing chips with a 2 nanometer. In the past few years, this company has been ranked among the best semiconductor companies by sales revenue.
Samsung designs chips for data centers, smartphones, and other applications. The company which was established in 1969 is one of the largest manufacturers of semiconductors in the world. This South Korean company employs more than 200,000 people across the globe. Their operations are in 74 countries. The Samasung Galaxy devices feature semiconductor chips produced by Samsung.
As of May 2021, this company revealed plans to increase its foundry production capacity. This plan was triggered due to the present chip shortage impacting the electronics industry. Also, this plan will include increasing its capacity in South Seoul.
In November 2022, Samsung Electronics revealed its plan to build a semiconductor manufacturing facility worth $17 billion in Texas. This is its most significant investment in the United States. This huge investment will improve Samsung’s manufacturing of high-performance semiconductor chips. Furthermore, this semiconductor facility will produce chips for Artificial intelligence, high-performance computing, and 5G applications.
SK Hynix
SK Hynix is a top leading semiconductor chip manufacturer in the world. This South Korean semiconductor manufacturer produces multi-chip package, DRAM, and NAND Flash. Also, it produces system semiconductors like CSMOS Image Sensors. As part of its plans to provide great semiconductor solutions to electronic companies, SK Hynix has plans to expand its 8-inch water foundry business.
Also, this company revealed its plans to partner with some subsidiaries of the SK group. SKY Hynix Inc has branches in China, the U.S, and Taiwan. As a company that majorly specializes in the production of memory semiconductors, this company’s semiconductors are widely used in consumer electronics like cell phones and DVD players. Some of their various customers include Dell, Apple, and Asus among others.
To diversify their company, SK Hynix may consider establishing a chip factory in the U.S. As one of the largest employer of labor in South Korea, SKY Hynix works with more than 22,000 people.
Intel Corp
Intel Corp is one of the most popular semiconductor manufacturers in the world. This semiconductor chip manufacturer has more than two decades of experience in semiconductor manufacturing. Due to its integration of advanced technologies and procedures in its semiconductor manufacturing, Intel Corp earns a top spot in the world’s best semiconductor chip manufacturers.
Over the past years, Intel has outperformed several chip makers. Also, this semiconductor company has invested in expanding its capacity in order to address the issue of chip shortage. In response to this, they would be investing a huge amount on chip packaging facilities in Malaysia. In the United Sates, Intel is investing on the expansion of a $3 billion factory in Oregon.
This multinational company supplies its semiconductor chips to clients like HP Inc, Dell Inc, and Lenovo Group Limited. Intel has its headquarter in Santa Clara, California. As a semiconductor chip manufacturer, Intel delivers communications and computing industries with systems and chips. The mission of this company is to create a better future for the technology world.
Broadcom Corporation
Broadcom has great expertise and skills in the production of semiconductors used in applications that ranges from smartphones to computers. This semiconductor company was founded in 1991. With its headquarter in California, Broadcom has been delivering quality to several clients across the U.S and beyond. Some its clients include Logitech, Apple, Dell, Nokia, IBM, Motorola, and Apple among others.
Broadcom has been able to earn the trust of its customers by building a strong reputation. This company delivers quality semiconductor chips. Also, it manufactures the “BCM43” series chips that offer WiFi support in various smartphones. Broadcom’s chips are ideal for use in both Android and Apple devices.
As a global leader in semiconductor manufacturing, Broadcom develops and supplies a wide array of infrastructure software and semiconductor solutions. One of the benefits of partnering with this company is its top-notch customer support. Broadcom produces semiconductor chips to meet the requirement of its various clients.
Qualcomm
When you need a reliable semiconductor chip manufacturer to handle your semiconductor project, Qualcomm is the right manufacturer for you. As a reputable semiconductor manufacturing company, Qualcomm specializes in the production of semiconductors that meets the demands of its clients. This company integrates advanced technologies and procedures in its semiconductor manufacturing.
Qualcomm produces semiconductors for various devices like laptops, watches, WiFi, and more. It is an innovative company that invests hugely in the production of high-quality semiconductor chips. The company venture into the production of PC server chip. In 2017, it built Centriq 2400, its first ever PC serve chip. This project was a success. Therefore, it led to the development of more PC semiconductors. Also, Qualcomm was among the first company that developed 5G technology. Qualcomm’s semiconductor products are widely integrated in devices like smartphones, IoT gadgets, and even cars.
In 2020, the total asset of Qualcomm amounted to $23.53 billion. This company has been able to increase its revenue due to its huge investment in expanding its capacity.
Applied Materials
With its headquarter in Santa Clara, California, Nividia Corporation has been providing electronic companies with high-quality semiconductor chips. This company specializes in the manufacturing of semiconductors for a wide range of electronic devices like smartphones, computers, and televisions. This American-based company was established in the year 1967.
It works with a team of professional engineers who are dedicated to innovating ideas that contribute to developing quality semiconductors. Applied Materials produces valuable equipment needed for chips manufacturing. For example, the equipment supplied by this company helps in manufacturing coatings for flexible electronics. Also, this company supplies liquid crystal display (LCD) screens.
The technology of this company is widely integrated in manufacturing silicon wafers. Applied Materials Inc. is one of the most popular semiconductor chip manufacturers that are transforming the future of semiconductors. In 2021, this company became the largest supplier of wafer fabrication equipment. As at that time, it raked 418.57 billion revenue.
Frequently Asked Questions
Which Company is the largest Producer of semiconductor chips?
TSMC is the largest semiconductor chip manufacturer. This company produces about 90% of high-performance chips across the globe. Also, it controls over 50% of the global semiconductor foundry market in terms of revenue.
Which Country produces the largest amount of semiconductors?
China produces the largest amount of semiconductors. This country accounts for about 24% of semiconductor manufacturing in the world. After China, Taiwan and South Korea is the second and third largest manufacturer of semiconductor respectively. Based on the most recent report, Taiwan accounts for about 21% of the semiconductor production in the world while South Korea accounts for 19% of the semiconductor manufacturing in the world.
Conclusion
The semiconductor chip industry is indeed a competitive one as semiconductor chip manufacturers keep producing faster, smaller, and more powerful semiconductor chip. The semiconductor technology has experienced developments and growth for the past 50 years. This growth and development have resulted in the manufacturing of more reliable and powerful electronic devices.
