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Samsung’s chip foundry business generated $613 million in sales during Q1 2016

According to market research firm IHS, Samsung outran other global integrated device manufacturers operating in the semiconductor foundry sector in the first quarter of this year in terms of sales. The South Korean company is reported to have earned an eye-watering $613 million in sales alone from its foundry business during the three-month period. This figure is three times more than that of runner-up Micron, which pulled in $198 million.

For those who are a little lost and are unaware of the foundry model, please allow me to explain. As it stands, there are currently three main types of microchip producers — an integrated device manufacturer, which designs, produces and sells circuits; a fabless chip company, which designs the chips without manufacturing them; and a foundry business that operates manufacturing facilities for aforementioned design houses.

Samsung operates the latter, turning designs from a fabless chip company into a tangible product that are often included in its smartphones, tablets, computers and televisions. It also ships these chips to other manufacturers all around the world who are working on their own products that required the technology to function, which is likely where the majority of its astonishing $613 million in sales came from during Q1.

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