Samsung Is Best Positioned to Compete With TSMC

Samsung—not Intel—is best positioned to emerge as the world’s leading alternative to Taiwan Semiconductor Manufacturing Co. (TSMC), according to Bernstein, Sam Boughedda reported for Investing.com.

Samsung Electronics' Pyeongtaek Campus, South Korea. (Photo: Business Wire)

In a new note analyzing Samsung’s reported $16.5 billion chip deal with Tesla, Bernstein said the partnership reinforces its view that “the world needs a leading-logic semiconductor producer in addition to TSMC, and that Samsung… is better positioned than Intel to be the alternative.”

Bernstein analysts noted that while the Tesla AI6 project may eventually expand beyond automotive use, “the annual revenue for Samsung will peak at $2–2.5 billion, and the lifetime contribution will be only ~$8B.”

That figure is “much lower than the disclosed $16.5 billion,” though Elon Musk has suggested the potential is “several times higher,” prompting speculation about broader applications in robotics or other devices.

Still, for Samsung’s struggling foundry business, the impact could be transformative.

“The $16.5 billion deal may lift Samsung Foundry revenue by 30–40%, and the benefit to profitability should be much more,” the analysts said, noting the unit is currently running at low capacity—particularly at its Taylor, Texas fab.