With the increasing demand for electronic devices, the
world is witnessing a huge demand for semiconductors and microprocessors,
adding to their market growth. However, a grave chip shortage has been
witnessed over the past year that has caused delayed delivery and price hike of
multiple products across the globe. This has led many market players in the
global microprocessor market to open up more production facilities and huge
investments in R&D initiatives.
In this article, we are going to discuss the top microprocessor
manufacturing companies that are expected to make big waves in 2022.
Intel Corp.
Establishment: 1968
Headquarter: California, United States
Founders:
Robert Noyce and Gordon Moore
Intel Corp. is the largest semiconductor company
globally, with a valuation of USD193.21 billion. The semiconductor
manufacturing giant has enjoyed dominance in the chip industry for 50 years.
The expansion of new microprocessors to entice buyers to upgrade their PCs and
the accompanying reliability of the products helped the company become
successful. The mega chip maker earned revenue of USD77.9 billion and USD79
billion in 2020 and 2021, respectively. Intel fabricates almost half
of its chipsets and microprocessors in-house at Intel-owned facilities based in
the suburbs of Phoenix, Albuquerque, and Portland. In 2020, Intel lost a valued
and lucrative customer, Apple, as the company decided to power its machines
with Apple’s new M1 chip. Intel’s newest microprocessor factory, Fab 42,
started its full operation in 2020 and uses the company’s 10 nm manufacturing
process to build semiconductor chips.
Taiwan Semiconductor Manufacturing Company Limited
Established: 1987
Headquarters: Hsinchu, Taiwan
Founder:
Morris Chang
Taiwan Semiconductor Manufacturing Company Limited
(TSMC), which is the world’s largest contract manufacturer of semiconductor
chips, controls more than half the global market for made-to-order chips, with
more than 90% market share by some estimates. The scarcity of chips
in the global market, prompted by the unprecedented demand for electronics, has
put TSMC from a largely anonymous services company to the center of a global
tussle over the future of technology. TSMC is investing USD100
billion in building new fab capacities over the next three years. The new
fabrication plant being built by TSMC in southern Taiwan will spread
across 22 football fields and the plant will be producing
groundbreaking 3-nm chips, expected to be 15% faster and
less power consuming. The company has a long list of clients including Apple,
Intel, Qualcomm, AMD, and Nvidia.
SK Hynix Inc.
Established: 1983
Headquarters: Incheon-si, South Korea
Founders: Chung Ju-Yung
SK Hynix is the third-largest semiconductor
manufacturing company worldwide that produces semiconductors such as DRAM, NAND
Flash, and CMOS Image Sensors. SK Hynix is constantly looking for opportunities
to strengthen its North American business, establishing R&D institutes and
US foundry fab that would positively impact related equipment and material
market players. The company uses i-TAP (Innovative-Technology Advancement
Program) to enhance employees' task performance. In 2021, the company commenced
the mass-production of LPDDR5 Mobile DRAM with the industry's largest capacity.
Qualcomm Technologies Inc.
Established: 1985
Headquarters: California, United States
Founder:
Irwin Jacobs
Qualcomm (QCOM) produces microchips for various
devices, from vehicles to watches, laptops to smartphones, and Wi-Fi. In 2021,
Qualcomm witnessed 60% annual growth for its Snapdragon chipsets and a 42% rise
in handset chips, owing to the rising penetration of smartphones and the
growing need for connectivity. The company has been pushing into the automotive
sector, designing chips that can be used to power dashboards and infotainment
systems simultaneously. In December 2021, Qualcomm announced a collaboration
with Google Cloud to provide users with a powerful, smooth function chipset
with improved AI capabilities. The chip manufacturer is also working with
European foundry partners to boost chip production and tackle chip shortage in
Europe.
Broadcom Inc.
Established: 1961
Headquarters: California, United States
Broadcom is an American public company specializing in
manufacturing microchips ranging from computers to smartphones. Some of the
esteemed clients of Broadcom are Lenovo, Asus, Logitech, Nokia, Motorola,
Apple, IBM, Dell, Nintendo, among others. Chips produced by Broadcom has the
ability to accelerate tasks such as encryption, which help companies aid
e-commerce and secure communications. The company also produces ‘BCM43’ that
supports Wi-Fi capabilities in smartphones.
Micron Technology Inc.
Established: 1978
Headquarters: Boise, Idaho, United States
Founder: Ward
Parkinson, Joe Parkinson, Dennis Wilson, Doug Pitman
Micron Technology is a semiconductor company, which manufacturers
DRAM and 3D NAND flash memory, and caters to cloud computing giants such as
Amazon AWS, Google, and Microsoft. Micron’s advanced memory chips account for
about 30% share of the USD460 billion global semiconductor market as
they are used in smartphones, PCs, and data centers in South Korea, Southeast
Asia, and Taiwan. The company runs one of the world’s most advanced semiconductor
R&D centers and plans to invest USD150 billion in its global manufacturing
operations to address the rise in demand for memory chips over the next decade.
Sony Corporation
Established: 1946
Headquarters: Minato, Tokyo
Founders: Akio Morita, Masaru Ibuka
Japanese multinational conglomerate Sony Corporation
engages in the manufacturing, designing, and sales of semiconductors. The
company is the world’s leading manufacturer of image sensors used in
smartphones and other applications. Sony Semiconductor strives in R&D
activities to develop a variety of products. In 2021, Sony struck a deal with
TSMC to build foundries in Kumamoto Prefecture, making an investment worth USD7.1
billion. Sony Corporation is likely to take a minority stake at the
facility, and the Japanese government would provide subsidies to cover 50% of
the manufacturing costs of the fab facility. Products to be built in the
upcoming fab facility would include image sensor data signal processors, and
ICs for automotive and other industrial applications.
Nvidia Corporation
Established: 1993
Headquarters: Santa Clara, Unites States
Founder:
Jensen Huang, Curtis Priem, and Chris Malachowsky
Graphic processor veteran Nvidia has become the
semiconductor industry’s most valuable firm. The company is worth more than
half a trillion dollars on the stock market and employs around 20,000 people.
Nvidia offers a range of products from DRIVE AGX, Jetson, Quadro, DGX System,
autonomous machines, etc., to cater to different sectors. Nvidia chips can be
found in everything from AI supercomputers to robots to autonomous cars, and
the company remains at the forefront of AI hardware technology.
Samsung Electronics Co. Ltd.
Established: 1969
Headquarters: Suwon-si, South Korea
Founder: Lee
Byung-chul
Samsung is the industry leader in technology, ranked
amongst the top 10 global brands. In 2021, South Korean tech giant Samsung
surpassed Intel to become the world’s leading chip manufacturer by revenue. The
company took the lead with a strong DRAM and NAND flash market performance in
2021 as the momentum for logic chips grew significantly. Samsung Electronics
has planned to invest in a new semiconductor manufacturing facility in Texas,
United States, with an estimated investment of USD17 billion to boost the
production of advanced logic semiconductor solutions.
Applied Materials Inc.
Established: 1967
Headquarters: California, United States
Founder:
Michael A. McNeilly
Applied Materials, Inc. is the world’s largest
supplier of semiconductor manufacturing equipment. The company is
well-positioned to supply customers with the most advanced 300mm wafer
fabrication systems. The company is the global leader in nano manufacturing
technology solutions with a broad portfolio in innovative equipment, service,
and software products. Applied Materials has a global reach due to its
intellectual capital, financial resources, and capabilities.
According to TechSci Research
report on “Microprocessor Market - Global Industry Size, Share, Trends,
Competition, Opportunity, and Forecast, 2016-2026 Segmented By Type (Desktop
Microprocessor, Mobile Microprocessor, Performance Microprocessor), By
Architecture (ARM, X86, SPARC, Others), By Technology Outlook (RISC, DSP, ASIC,
SUPERSCALAR, CISC), By End User (Consumer Electronics, Medical, Server &
Data Center, Automotive, Manufacturing, Others), By Company (2020)”, the global microprocessor
market is anticipated to grow at a formidable CAGR during the forecast period.
The growth can be attributed to the increasing adoption of cloud-based
applications, data centers, and advancements in artificial intelligence and machine
learning technologies. Besides, the increasing demand for AR/VR devices and
growing need for connectivity are propelling the demand for microprocessors,
which is attributing to the market growth.
According to another TechSci Research report on “Semiconductor Market - Global
Industry Size, Share, Trends, Opportunity and Forecast, 2017-2027, Segmented By
Type (Integrated Circuits (Logic, Memory, Micro, Analog), Sensors,
Optoelectronics, Discrete Semiconductors), By Process (Doping, Wafer
Fabrication, Masking, Etching, Others), By Application (Networking &
Communication, Healthcare, Automotive, Consumer electronics, Industrial, Smart
Grid, Gaming and Others) and By Region”, the global
semiconductor market is expected to grow at a formidable CAGR during the
forecast period. The growth can be attributed to the increasing affordability
of consumers to buy high quality products and rising technological advancements
in electronic products. Besides, growing need for connectivity and increasing
penetration of internet of things devices are fueling the growth of the global
semiconductor market.