By the end of 2011, only three companies — TSMC, GlobalFoundries and Samsung — are expected to be involved in large scale production of semiconductors using 22 and 20 nanometre processes, according to a research by IHS iSuppli.

There could be only three sources for high volume, leading-edge semiconductor foundry manufacturing by the end of 2011, predicts the study.

IHS director and chief analyst of semiconductor manufacturing Len Jelinek said high cost of advanced semiconductor process technology is cut down the ranks of leading-edge foundries.

Jelinek added, "Unless additional foundries join the party, semiconductor companies will face minimal competitive choices when it comes to advanced chip geometries."

Media reports speculated that TSMC, which reportedly owns 50% market share of the foundry space, will be the leader in the foundry market in 2011.

TSMC may overtake Intel to become the largest supplier of semiconductors, if it sells directly to the merchant market.