Samsung plans to triple chip business market share

Geronimo Vena
Luglio 25, 2017

Samsung spun-off the $4.76B foundry business within the semiconductor division this spring as the first step towards aggressive growth.

Reuters says if Samsung continues the way it's doing business now, it will probably pass Intel as the world's top chipmaker by sales in 2017.

Last year, TSMC had a almost 51% market share with Samsung at almost 8%, which put the company in fourth place.

The memory industry is notoriously cyclical and unlikely to repeat this year's huge revenue gains. And as new applications such as cloud computing, autonomous driving and virtual reality emerge, analysts say Samsung needs to strengthen the rest of its chip portfolio to secure future growth.

Jung declined to comment on revenue or investment targets, but said foundry and memory businesses will share the six trillion won next-generation chip production line that will be built in Hwaseong, South Korea.

Samsung doesn't reveal its chip contract manufacturing revenue, but analysts estimated it at 5.3 trillion won last year, with Daishin Securities forecasting it will see an increase of 10 percent or more this year.

"We want to become a strong No. 2 player in the market", Jung said. "Without such advanced technology, it'll be hard to win back customers from your rivals".

Recent rumors suggest Samsung might regain some of Apple's business next year because the company runs ahead of TSMC on producing 7nm chips with extreme ultraviolet lithography tech.

As the most major situation in which Samsung Fountry would be attempting to "win back" a client from a rival, it's TSMC and Apple of which he speaks, without a doubt.

Jung said the company was confident of building chips using the latest manufacturing technology.

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