comscore Samsung aims to triple its chip foundry market share in 5 years
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Samsung aims to triple its chip foundry market share in 5 years

Samsung is expected to take over Intel Corp as the world's top chipmaker by revenue in 2017.

samsung-exynos-processor-image

Samsung is one of the top global smartphone brands. But it also has quite a name in the chipset industry and has pretty much decent run with its own Exynos series. Earlier this year, the company split the chip making business as Samsung Foundry. While Samsung suffered a setback after Apple, one of its biggest customers then, dropped the deal the former, the Korean giant is now looking to aggressively push its Foundry business in coming years. The company has set a target of tripling the market share over the next five years. Also Read - PUBG New State receives over 17 million pre-registrations as closed alpha testing ends

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“We want to become a strong No. 2 player in the market. You need a technology that can wow your clients. Without such advanced technology, it ll be difficult to win back customers from your rivals, ES Jung, Executive VP and head of Samsung Foundry told Reuters. He further said that the company aims to be the new growth drivers for the chip business in the world.

Samsung has been doing foundry work since 2005 and is a major player in the high-end SoC market. To talk about the latest, the company exclusively manufactures the Qualcomm Snapdragon 835 chipset, which is a part of nearly every high-end Android phone including the Samsung Galaxy S8, Galaxy S8 Plus, Xiaomi Mi 6, OnePlus 5 and LG G6. ALOS READ: Apple iPhone 8: TSMC reportedly begins production of 10nm A11 chipsets

Samsung’s foundry has also had some history with Apple in the past, however, Apple turned to TSMC for the production of its A10 chipset last year. Talking about TSMC, it is now deemed as the world’s top chipmaker followed by Intel Corp, in terms of sales. Samsung, however, is expected to surpass Intel Corp. to become No. 2 in the chip business very soon. All three companies are involved in an intense competition for securing orders from companies such as Qualcomm and even Apple, which design their own chips but don t own any manufacturing. ALSO READ: Qualcomm ditches Samsung to work with TSMC for 7nm Snapdragon chipset

Samsung highlights that it was the first to mass produce 10-nanometer chipset. TSMC, in the meanwhile, has said that due to high demands, it will now start full production of 10 nanometer as late as the second half of this year. Apart from that, 8-nm chipsets will be coming later this year and 7-nm will follow in 2018. Samsung has already announced that it has invested heavily in setting up the manufacturing facility and production lines for the 7nm chipset. The South Korean company also promised customers that it will introduce new production techniques ahead of competitors and have a new plant up and running by the fourth quarter of this year. ALSO READ: Samsung Galaxy S9 and Galaxy S9+ to use 7nm Snapdragon and 8nm Exynos chips: Report

TSMC as of now has 59 percent market share in the foundry market, according to market research firm IC Insights. Last year, Samsung chipset manufacturing business saw sales of $4.44 billion, of which 40 percent or nearly $1.78 billion was contributed by the production of Qualcomm s chips. The report further says that though Samsung already has big firms such as Qualcomm Inc, Nvidia Corp and NXP Semiconductors as clients, it might take Samsung a long way to catch up to TSMC.

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  • Published Date: July 25, 2017 1:07 PM IST



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