Recently, Ericsson announced that it had reached a multi-year agreement with Samsung on global patent licensing. Therefore, both of these firms had decided to end the legal battles, which had crashed Ericsson’s first-quarter revenue.
According to a statement shared by Ericsson, this cross-licensing agreement covers network infrastructure and mobile phone sales starting January 1, 2021. The company expects that patent licensing revenue in the second quarter will be between SEK 2 billion (US$237.3 million) and SEK 2.5 billion.
Following this agreement, Samsung and Ericsson will withdraw complaints filed in the U.S. International Trade Commission and ongoing litigation in multiple countries. Furthermore, both firms refused to disclose the terms of the agreement on the grounds of confidentiality.
Back in Decembeer 2020, Ericsson sued Samsung in the United States, demanding payment of royalties. It’s worth mentioning that, the patent licensing revenue of Ericsson fell to 800 million Swedish krona this year from 2.5 billion Swedish krona compared to the same of period last year.
Ericsson said that its patent revenue continues to be affected by multiple factors, such as expired license agreements waiting to be renewed, geopolitical impacts on the smartphone market, the transition from 4G to 5G, and possible exchange rate effects in the future.
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Samsung ranks fourth on Forbes list of world’s largest tech companies
Despite high sales costing trillions of dollars in market value, the world’s largest technology companies remain strong against the stringencies of Wall Street — many of which collect revenue and profits as their dominance begins to decline.
After looking for a record of 177 locations on the list by 2021, the number of technology companies reaching Global 2000, Forbes’ annual average of the world’s largest companies, dropped to 164 this year (2022), but the overall decline did not prevent total sales. The firms have set a record $4 trillion in gross annual revenue over the past 12 months, up from about $3.3 trillion last year — even a few firms.
According to a recent report, Samsung Electronics‘ ranking on Forbes’ list of the world’s largest technology companies dropped two notes from second in 2021 to fourth in 2022.
World’s Largest Tech Companies ln 2022
Samsung Electronics’ sales increased to US$244.2 billion from US$200.7 billion last year, but its market value declined by US$143.2 billion to US$367.3 billion, according to US Business Magazine.
Apple also took the top spot and its market capitalization reached US$2.6 trillion, up from US$300 billion last year from $2.3 trillion. In this list, Google’s parent company Alphabet is in second place.
The sales of Alphabet sales reached US $257.5 billion, an increase of US $75.1 billion from the previous year (US $182.4 billion). At the same time, its market capitalization also increased from US $ 1.5 trillion to US $1.6 trillion.
Likewise, Microsoft (US $2.1 trillion) took the third spot, while Tencent (US $414.3 billion) remained in the top five. Meta Platforms (the US $499.9 billion) took the sixth spot, followed by Intel (US $190.3 billion), TSMC (the US $494.6 billion), Cisco Systems (US$213.4 billion), and IBM (US$124.3 billion).
TSMC likely to be defeated by Samsung in the first 3nm chip competition
According to a recent report by a Korean media, the world’s largest manufacturer of semiconductor foundry, TSMC will begin developing a semiconductor 1.4-nanometer nm. It is analyzed as a strategy not to lose leadership in the tech competition as well as the performance of rival founders Samsung Electronics and Intel.
As the report suggests, TSMC plans to convert the R&D team of the 3nm process into a 1.4nm development team and use it officially from next month. TSMC is very likely to lose to Samsung Electronics in the first 3nm competition.
Recently, Samsung Electronics announced plans to produce 3-nano semiconductors in the first half of this year and TSMC in the second half. Intel, which arrived late at the foundry, annoys TSMC by launching a 2nm process in early 2024 and a 1.8nm process in the second half of 2024.
As a result, the TSMC is refining its leadership by building a 1nm first phase process. And the Chinese media Qulali Kerji said, “The production of TSMC’s 2-nano is scheduled for testing by 2024, so bulk production will be by 2026.
TSMC has been competing fiercely with Samsung Electronics for 5nm and less, with Intel also competing in this battle, but defeating their rivals in terms of performance.
According to TrendForce, a market research company, TSMC is ranked with 52.1% of the market share established (based on sales) in the fourth quarter of last year, followed by Samsung Electronics with 18.3% and second place.
An industry official said, “TSMC benefits greatly when orders are being delayed by companies setting up during shortages of semiconductors.”
Samsung image sensor sales increased, and Sony chased to become market leader
Samsung is the number one in terms of the semiconductor market and now the company has increased its image sensor market around the globe. Similarly, Sony is aspiring to be the market leader by differentiating products and using new technologies.
According to market research company TSR, Sony’s market share, which is previously listed in image sensor sales, has declined slightly. On the other hand, companies of late like Samsung and Omnivision have been able to increase their market share.
By 2021, the market share of Sony image sensors was estimated to be 43% with sales of $8.7987 billion. This is a decrease of 1.3% compared to last year. Samsung took second place with 19.7%, while Omnivision took third place with 14.1%. They achieved marginal growth of 0.8% and 2% respectively over the previous year, closing the gap by moving ranks.
Samsung’s expanding market share is due to price competition and a sharp increase in sales focused on medium to low-end smartphones. The analysis shows that Samsung has reduced costs by upgrading its image sensor packaging technology.
Counterpoint has analyzed that the price reduction of the 50-megapixel image sensor released last year by Samsung is the driving force behind the growth. Keeping this in mind, not only Samsung Electronics’ mid-range smartphones but also smartphones like Vivo, Oppo, and Xiaomi are equipped with the above image sensor.
Samsung also uses its line to easily generate photosensors. With this in mind, Samsung plans to use the image sensor as an important weapon for systemic semiconductors. As the number of smartphones with premium application processors (APs) has exceeded market expectations, it is expected to recover its revenue by growing the image sensor business.