South Korea and Taiwan formed an alliance for the international semiconductor raw material and chip crisis. Samsung and TSMC cooperation declared war on China.
The disruption of China’s global supply chain hit China and the US Intel firm the most. Now, Samsung and TSMC alone meet 43% of the chip supply. Intel, which plans to establish two new chip manufacturing plants in Arizona, will not be able to catch up with South Korea by 2024. More than $ 20 billion will be spent for these chip manufacturing facilities. This means facing a very important competitor for both China and the USA.
An industry research report published by IC Insights in March reveals that Intel is not capable of defeating these two Asian giants for now. “Governments will need to spend at least $ 30 billion a year for at least five years to have a reasonable chance of success,” the report said, referring to the minimum spending needed by the US, China and the EU to develop chip makers.
Samsung remains the world’s largest spending company since 2010, according to IC Insights. Intel barely catches the second-ranked TSMC. Together, Samsung and TSMC are expected to continue to be responsible for at least 43% of global total capital expenditures this year. In the coming years, the situation may be turned in Intel’s favor. For now, the alliance of South Korea and Taiwan is in the lead.