What matters most in Samsung's foundry business?

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Establishing independent foundry affiliate took great cost

www.koreatimes.co.kr, Jul. 28, 2021 – 

For Samsung Electronics, an obvious strategy in its ambitious high-stakes initiatives ― to transform the company status into a global top player in contract-based chip manufacturing ― will clearly be a transformational pursuit, as the top memory chipmaker is asked to move into the profitable foundry business.

Unlike the memory chip business where the core business nature lies in volume manufacturing, on-time delivery and better pricing, the foundry chip business is much more complicated as it is a contract-based process. Earlier, it made little sense for Samsung to use its manufacturing ability to make semiconductors for various third-party clients when it was more profitable to use that capacity for itself.

But as the global memory chip market is being controlled by three rational players including SK hynix and Micron Technology of the United States, Samsung's future corporate sustainability is dependent upon its commitment to boosting its foundry business. The current market leader, Taiwan's TSMC, also faced the same situation. Samsung aims to become the world's foundry leader within the next few years.

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