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Friday, May 12, 2017
Samsung Creates New Chip Foundry Division


Samsung Electronics has formed a new division within its semiconductor business for contract chip manufacturing as the firm seeks to attract more customers.

The new division will be responsible for making mobile processors and other non-memory chips for clients such as Qualcomm and Nvidia, competing with firms such as Taiwan Semiconductor Manufacturing Co.

The South Korean tech giant said last month it has finalized the development of second-generation 10-nanometer (nm) FinFET process technology, claiming the development will help the firm secure more foundry business partners.

Although revenue from the foundry business remains a small portion of Samsung's overall sales, it has seen sharp growth.

In 2016, Taiwan-based TSMC stood as the leading player in the foundry sector, followed by another Taiwanese firm UMC and U.S.-based GlobalFoundries. Samsung was the No. 4 player in the area.

Research firm IHS estimates Samsung's foundry revenue rose 86 percent to $4.7 billion in 2016.



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