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What is samsung strategy

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Reference no: EM133030877

Read the statement below first and answer the following questions.

Sohee Kim who works for Bloomberg out of Korea published two articles "Samsung Intensifies Chip Wars With Bet It Can Catch TSMC by 2022 (https://www.bloomberg.com/news/articles/2020-11-17/samsung-intensifies-chip-wars-with-bet-it-can-catch-tsmc-by-2022)" and "Samsung Takes Another Step in $116 Billion Plan to Take on TSMC (https://www.bloomberg.com/news/articles/2020-05-21/samsung-takes-another-step-in-116-billion-plan-to-take-on-tsmc)".

Samsung and TSMC have different strategies. According to Sohee Kim Samsung is launching a new process technology (i.e., GAA) at 3nm to continue its competitive advantage as a high-volume manufacturer in 2022. TSMC is extending their 5nm FinFET based process at 3nm to keep their #1 position advantage as a high-volume manufacturer in 2022.

Samsung used to be #1 in foundry. After Samsung produced its own smart phones, Apple left Samsung and is currently exclusive to TSMC. TSMC has not attempted to produce its own mobile phones (nor other consumer products) at all. So, TSMC is trusted and supported by a very large ecosystem of EDA (electronic design automation), IP, and services companies including Apple and AMD. Hundreds of silicon proven IP will be immediately available for TSMC 3nm customers while Samsung must build a new ecosystem for GAA.

Thus, the author believes that Samsung Foundry cannot compete with TSMC at 3nm. The TSMC process design kit (PDK) has the full support of the ecosystem. The Samsung 3nm PDK on the other hand is still evolving as are the tools and IP that will support it.

What is TSMC's strategy at 3nm, strategies among cost leadership, focus, differentiation, market penetration, market development, product development, and diversification? And, why?

What is Samsung's strategy at 3nm, strategies among cost leadership, focus, differentiation, market penetration, market development, product development, and diversification? And, why?

Do you think TSMC's strategy is different from Samsung's strategy? If yes, please explain why (please put your justifications here)

Reference no: EM133030877

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