Comparative Analysis on Management Result for Design House Partners of TSMC & Samsung Electronics

Due to a big slump of global memory chip business, the semiconductor segment of SEC fell into a deficit in 2023 for the first time since 2010. But, TSMC still kept a very high revenue to operating profit ratio, 42.6% in 2023, so the result of the year 2023 clearly showed a big difference of growth potential between them. This study accessed such a gap between them by analyzing the result trend of alliance partners. Major findings of the analysis are to be sum up as follows. Firstly, the difference of attribute of work between memory chip and system chip is clearly confirmed by the performance trend of TSMC and SEC. Secondly, it can recognize what makes a sustainable growth of TSMC by tracing its fabs’ resolution revenue share trend. Above all, TSMC has been able to reduce fab cost efficiently by covering so many types of fab demand as enough to make the economy of scale. Thirdly, the results of TSMC design house partners have been much better than those of SEC partners since 2019. Especially, both GUC and Alchip have shown a much better result than other partners. Fourthly, the growth momentum of Korean design house partners has been much weaker than that of Taiwanese ones. So, it can be said that the competitiveness of Taiwanese partners comes from the clustering advantage of system chip industry ecosystem under TSMC leadership.