Samsung's chip manufacturing business expected to grow further this year

samsung nand flash memory chip plant pyeongtaek korea

Business

Samsung announced its financial results for Q2 2020 last month, and it surprised everyone with strong earnings and profit despite the COVID-19 pandemic slowdown. A massive part of its earnings came from the company's chip-making business, which achieved record quarterly and half-yearly revenues, thanks to higher demand from data center and server segments. Now, it is being expected that the South Korean firm's foundry business will grow further.

Analysts believe that Samsung's chip manufacturing business will see higher growth in the second half of 2020. The company had mentioned during its earnings call that its chip customers' inventory build-up led to robust earnings. Currently, Intel is looking to outsource 7nm chip production to either Samsung or TSMC due to problems with its own 7nm foundry process. While the processor maker hasn't finalized its choice yet, the order will have a trickle-down effect and the whole contract chip manufacturing industry will benefit from it.

Samsung said that it will begin mass production of mobile and high-performance computing chips in the second half of 2020, which will improve its business. The company is also looking to diversify its product portfolio beyond mobile products. It is expected to get contract chip manufacturing orders from Nvidia for its RTX 3xxx series GPUs and Qualcomm for the Snapdragon 875G and the Snapdragon 735G SoCs. If it manages to bag orders from Intel, it will be a great win for Samsung.

The South Korean chip giant has already started the mass production of 5nm chipsets and it will add a new foundry production line in Pyeongtaek for the 5nm EUV process node. It has already added an EUV-dedicated production line in Hwaseong. Samsung has said that the adoption of EUV technology is becoming more important as it allows scaling down complex structures on wafers and can be used for 5G, AI, and ML applications at lower power consumption.

Asif Iqbal Shaik - Senior Editor

[email protected]

First Samsung device: T100

Asif is a computer engineer turned technology journalist. He has been using Samsung phones since 2004, and his current smartphone is the Galaxy S21 Ultra. He loves headphones, mechanical keyboards, and PC hardware. When not writing about technology, he likes watching crime and science fiction movies and TV shows.

Source Business Samsung Foundry

Samsung's chip manufacturing business expected to grow further this year

Asif Iqbal Shaik - Senior Editor

[email protected]

First Samsung device: T100

You might also like

Did Qualcomm kill Samsung-made Snapdragon 8 Elite Gen 2 for Galaxy S26 Ultra?

Samsung delays completion of Texas chip factory due to a huge problem

Samsung takes one step back to take critical step forward for its chips

Galaxy S26's 2nm Snapdragon chip could bring good news for Samsung