Taiwan Semiconductor Manufacturing Co. (TSMC)’s strategic partnership with Japanese chipmakers could threaten the status of Samsung Electronics, which is struggling to catch up with the bigger rival, according to analysts.
Japan has signed off on a 37-billion-yen semiconductor research project to develop cutting-edge chip technology in the country that would have about 20 Japanese companies, including Hitachi High-Tech Corp., working with TSMC.
The Japanese government will pay over half of the cost.
Backed by Japan’s Ministry of Economy, Trade, and Industry, the project is focusing on research and development of chip packaging, which is the final stage of semiconductor device fabrication.
The construction of facilities will start around September, with full-scale R&D projects expected to kick off in 2022.
The partnership with TSMC will bolster the Japanese firms, which are strong in chip components, equipment, and NAND flash memory fabrication, but laggards in the foundry market, where chipmakers make chips for fabless companies and chip designing firms.
The Japanese government also wants Sony Corp. to enhance ties with TSMC in the image sensor segment, according to media reports.
TSMC’s foundry market share increased from 54 percent to 55 percent, widening its lead over Samsung to 38 percent.
Samsung's market share fell from 18 percent in the fourth quarter last year to 17 percent in the first quarter due to the temporary shutdown of its Austin chip plant.
To compound Samsung's woes, electronics companies, one of its key customers for chips, are seen reducing their production due to a shortage of system chips such as display driver ICs (DDIs) and microcontroller units (MCUs).
While Samsung has been aggressively expanding facilities in its quest for global leadership, its 10 trillion won-a-year expenditure to develop its foundry technology pales in comparison to TSMC’s 30 trillion won-a-year investment.
There's also an industry outlook that the global demand for memory chips, Samsung's mainstay products, may not be as strong as forecast.


Taiwan Urges Stronger Trade Ties With Fellow Democracies, Rejects Economic Dependence on China
SpaceX Seeks FCC Approval for Massive Solar-Powered Satellite Network to Support AI Data Centers
Tesla Launches New Model Y Variant in the US Starting at $41,990
US Judge Rejects $2.36B Penalty Bid Against Google in Privacy Data Case
Hyundai Motor Lets Russia Plant Buyback Option Expire Amid Ongoing Ukraine War
Nvidia Nears $20 Billion OpenAI Investment as AI Funding Race Intensifies
Gold Prices Rebound Near Key Levels as U.S.-Iran Tensions Boost Safe-Haven Demand
Palantir Stock Jumps After Strong Q4 Earnings Beat and Upbeat 2026 Revenue Forecast
SoftBank and Intel Partner to Develop Next-Generation Memory Chips for AI Data Centers
Amazon Stock Dips as Reports Link Company to Potential $50B OpenAI Investment
Meta Stock Surges After Q4 2025 Earnings Beat and Strong Q1 2026 Revenue Outlook Despite Higher Capex
Disney Board Nears CEO Decision as Josh D’Amaro Emerges as Leading Candidate
SpaceX Updates Starlink Privacy Policy to Allow AI Training as xAI Merger Talks and IPO Loom
Sam Altman Reaffirms OpenAI’s Long-Term Commitment to NVIDIA Amid Chip Report
Pentagon and Anthropic Clash Over AI Safeguards in National Security Use 



