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TSMC facing manpower shortage, Samsung taking counter measures
A popular news firm reported that TSMC is currently recruiting engineers and technicians to work at the 21st plant which is to be built in Arizona, USA through its recruitment website. Samsung could also face similar difficulties while hiring for its semiconductor foundry in the U.S, and it has been preparing some countermeasures in advance.
Business Post revealed that TSMC in Taiwan is planning to relocate a larger number of professionals that it has hired from Taiwan to the United States in anticipation of taking this counter-forward step to secure the manpower ahead of its large-scale semiconductor foundry plant investment in the United States.
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There is a condition for recruitment that until the end of this year the newly joined technicians and engineers have to work in Taiwan for semiconductor equipment operations and semiconductor quality inspection and management then move to the United States and work for at least two years.
Why does TSMC make it a necessary condition for recruitment?
TSMC is a very popular manufacturer and a Taiwanese job seeker seems to have minded the possibility of experiencing a serious manpower shortage after investing in a US semiconductor plant.
This could be TSMC’s strategy to grab the workers because after doing such a large amount of investment it requires the manpower professionals in thousands, even for its normal operations.
Looking at the present scenario in which despite the rapid development in advanced semiconductor technologies currently experiencing a serious manpower shortage not only in semiconductor industries but the battery, finished vehicles, and IT industries such as software and other components.
Difficulties for Samsung Electronics?
The situation prevails all over the US and Samsung Electronics a month ago announced that it is going to launch a large-scale semiconductor foundry in the US with an investment of about 20 trillion won. This makes Samsung worried about plant operations at the same time, and has also started to take the countermeasures for the same.
Thanks to Samsung Auxilary Semiconductor foundries operating in Austin, Texas, employing more than 3000 skilled professionals. Which seems to be advantageous for Samsung. Like TSMC, Samsung Electronics can also plan to recruit its advanced semiconductor manufacturing manpower from South Korea.
Samsung remained the king in the Q2 2024 market, but Apple and Xiaomi are getting closer. IDC market research data shows that Samsung led the worldwide smartphone market in the second quarter of the year and Chinese brands scored rapid growth.
According to IDC, Samsung sold 53.9 million devices in the second quarter. The company occupied an 18.9% market share internationally. The company has slightly improved its sales share up from 53.5 million units in the same period last year.
The data suggests that Apple ranked second in terms of global volume sales. The iPhone maker shipped 45.2 million devices in Q2, 2024. It captured a market share of 15.8%, a modest increase from 44.5 million shipments in the second quarter of last year.
Third comes Xiaomi. The Chinese brand saw massive growth in sales year over year. It had sold 42.3 million smartphones in the second quarter alone. It’s a big jump from 33.2 million units shipped in Q2 2023, becoming a potential threat to Apple and Samsung.
Apart from this, Vivo also recorded significant growth in the global market. The company’s year-over-year growth in Q2 was 21.9%, with sales listing 25.9 million units with a market share of 9.1%. The growth percentage shows that aggressive marketing and boasting competitive specs into devices is paying off.
Samsung, Apple’s game isn’t over…
Last week, Samsung launched its new foldable phones, releasing on July 24, 2024. Apple, on the other hand, is expected to launch new flagship iPhones in September. It means, Samsung will enjoy the third quarter as well. The fourth quarter might be of Apple as iPhone sales would sharply grow in the global market given the new lineup release.
Samsung is now preparing to unveil new FE products later this year, followed by the S25 series in early next year. Chinese brands are expected to debut their latest flagships in the last quarter of this year, while Google Pixel phones are also coming in August.
Samsung today announced provisional sales and profit results for the second quarter. Samsung formally announced the provisional/predicted sales and operating profit, suggesting a massive profit boom in Q2, 2024 given the AI memory semiconductor rise.
In Q2, 2024, Samsung sales provisionally increased by 2.89% and operating profit by 57.34% compared to the previous quarter thanks to AI boom. Besides, the sales climbed by 23.31% and operating profit by 1,452.24% compared to the same period last year.
The company expects sales of 74 trillion won and operating profit of 10.4 trillion won on a consolidated basis. While these results are not final, there won’t be much change in the final result when it comes out. Samsung had a pretty profitable period in the second quarter.
Samsung in Q2
- Consolidated Sales: Approximately 74 trillion Korean won
- Consolidated Operating Profit: Approximately 10.4 trillion Korean won
The Korean tech giant is currently facing yield issues in its second-generation 3nm process. The flagship Exynos processor is unlikely to be commercialized this year. It would lead the Mobile business to face additional burdens due to rising prices of Snapdragon chipsets.
Meanwhile, Samsung is focussing on HBM (high bandwidth memory) semiconductors. HBM is a key player in artificial intelligence servers and data centers. The booming AI market will directly benefit Samsung’s semiconductor business.
Samsung ranked first in market share in the global smartphone market in Q3, 2023. TrendForce report says that Samsung led the global Q3 smartphone market, recording a market share of 19.5%.
Overall production in the third quarter increased by 11.5% compared to the previous quarter to 60.1 million units. During the same period, Apple’s production increased by 17.9% to 49.5 million, thanks to iPhone 15.
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Third place was taken by Xiaomi (13.9%), followed by Oppo (12.6%) and Transion (8.6%). 6th place is Vivo (8%). Meanwhile, global smartphone production reached 308 million units, a 13% increase compared to the previous quarter and a 6.4% increase from the previous year.
Huawei’s re-entry into the flagship smartphone market targeting Apple has had a significant impact in China. Huawei is aiming to expand its high-end flagship series, focusing on the Chinese domestic market next year, so Apple “We plan to attack directly”.
// Source