Samsung's banking on yesteryear tech to win the chipmaking fight – I hope it wins

The world of technology is full of beautiful things. From a sleek and stylish new phone to a smartwatch at the cutting edge of fashion, there's always something to find the beauty in.

Still, it's tough to find any sort of beauty in the processors used in those devices. Sure, we can try to make them seem more snazzy with marketing campaigns and adjectives, but it's never going to be the sexiest thing.

Still, it's crucial for any and every tech brand. That's at least part of the reason why Samsung is so keen to regain a hold on the market. Currently, Taiwan's TSMC is the major player, with approximately 62% of the market share. They supply a wide array of brands, including Apple.

Samsung's market share is comparably slim. At 11%, it sits a far cry away from TSMC. It's gaze won't be focussed forward, then, but rather on a brand approaching from the rear. The Semiconductor Manufacturing International Corporation (SMIC) is a Chinese state-owned chip maker – and it is growing.

Based on the same figures cited throughout this piece, the brand grew to a 5.7% market share in Q1 of 2024. Quite aside from any potential geopolitical implications, that rise will has clearly got Samsung worried. Its market share has dwindled over the last few years, with public controversies surrounding its Exynos chips doing nothing to help that cause.

Fortunately, the brand has a solution. Spearheaded by new chip foundry chief, Han Jin-man, said that a two-track strategy will be employed, with the brand aiming to ramp up production of modern 2nm processes to beat its rivals, while also monetising older 10nm processors.

For reference, 10nm architecture was first introduced back in 2016, and featured on devices including the Samsung Galaxy S8 and the iPhone 8. More recently, 10nm architecture was the basis of Intel's Tiger Lake range of processors.

It's not yet clear how Samsung plans to market these older technologies, though. While there is certainly some merit to offering it as a lower-cost phone processor, that may well prove too tough to sell against competitive mid-tier chips on newer processes.

Whatever the case, I really hope Samsung can get back to business on the chip making front. It's no secret that more manufacturers will lead to better competition, more innovation and lower prices, which will be a welcome boost for the end consumers.