SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

News For You
News For You
Notifications

Samsung doesn’t feel threatened by Chinese chip rivals

Business
By 

Last updated: March 23rd, 2018 at 10:57 UTC+01:00

Chinese smartphone manufacturers have given Samsung a run for its money in the global smartphone market and now they have their sights set on Samsung's lead in the semiconductor market. The country purchases almost a fifth of the global DRAM supply and has been funding the creation of domestic memory producers to reduce imports and establish Chinese footing in this lucrative sector.

Samsung hasn't turned a blind eye to these moves and it has ramped up its investments in this division over the past few years. The company is using its deep pockets to crush memory chip rivals and feels that it's in a strong enough position to not feel threatened by Chinese upstarts.

Samsung working to extend gap to rivals

Kim Ki-nam, head of Samsung's chip business units, has downplayed the threat of Chinese rivals in this segment of the market. “Technological barriers in chips are relatively higher than in other industries,” he told reporters during Samsung's annual shareholders' meeting today, adding that “It takes more than just large short-term investments to overcome such difficulties.”

Samsung's chip business is a cash cow in the true sense of the word. Its revenues were over $100 billion last year which accounted for 45 percent of the company's total revenue for 2017. It accounted for 75 percent of Samsung Electronics' annual operating income.

So it comes as no surprise that Samsung is keeping a close eye on what the Chinese are doing. Ki-nam mentioned that Chinese firms are heavily investing in all types of semiconductors including memory chips but cautioned that the technology gap can't be narrowed by short-term massive investment. He said that Samsung will focus all of its energies to ensure that it continues to lead this sector.

Samsung's strategy is to expand its second-generation 10nm DRAM products and increase gaps to its rivals by developing third-generation 10nm DRAM and sixth-generation NAND flash in the near future. Samsung is also going to focus on meeting the rising demand for chips from the Internet of Things, 5G and automotive industries.

Via Business semiconductors
Galaxy AI summarized

Scroll for more related content
News For You

You might also like

US government gives GlobalFoundries a $3.1 billion package to make more chips

US government gives GlobalFoundries a $3.1 billion package to make more chips

The US government has become very serious about increasing production of advanced semiconductors at home. To that end, the company is strategically providing grants and loans to eligible companies, helping them expand their manufacturing facilities. It was announced today that GlobalFoundries, a chipmaker based in New York, will receive a $3.1 billion package from the […]

  • By Adnan Farooqui
  • 5 months ago
Apple’s chips made by TSMC will be packaged in the US by Amkor

Apple’s chips made by TSMC will be packaged in the US by Amkor

Amkor, one of the leading providers of packaging and test services for semiconductors, has announced that it is building an advanced packaging and test facility for semiconductors in Peoria, Arizona, USA. According to Amkor, once this facility opens, Apple will be its first and largest customer. At this facility, Amkor will package and test those […]

  • By Abid Iqbal Shaik
  • 7 months ago
Samsung takes a hit as global semiconductor market loses $240 billion

Samsung takes a hit as global semiconductor market loses $240 billion

The global semiconductor market is going through a tough time. The slowdown in demand and geopolitical challenges have contributed to a significant dent in the market's value. Shares of leading semiconductor companies, including Samsung, continue to pressure downward. The export restrictions announced by the Biden administration last week have further complicated matters. These measures cut […]

  • By Adnan Farooqui
  • 2 years ago
Is chip design legend Jim Keller going to work with Samsung?

Is chip design legend Jim Keller going to work with Samsung?

Anyone who follows the news about the chip industry knows who Jim Keller is. He's a veteran of both Intel and AMD, being closely involved in chip advances at multiple companies. Keller also worked on some of Apple's early proprietary processors. Keller has also worked with Tesla, helping the company develop the chip that sits […]

  • By Adnan Farooqui
  • 3 years ago
Samsung heir could be pardoned as semiconductor supply issues continue

Samsung heir could be pardoned as semiconductor supply issues continue

The ongoing global shortage of semiconductors is causing supply problems across a wide variety of industries. Some car manufacturers have been forced to halt production due to parts unavailability, and with both the USA and China trying to become the world's greatest semiconductor hub, Samsung Electronics is reportedly feeling pressure from both sides. The company […]

  • By Mihai Matei
  • 3 years ago
Samsung’s on the fence regarding Joe Biden’s chip infrastructure plans

Samsung’s on the fence regarding Joe Biden’s chip infrastructure plans

Monday's White House meeting between US President Joe Biden and the industry's largest semiconductor companies — including Samsung — has concluded. The details of the summit remain behind closed curtains but the US President's intentions have become clearer, as he highlighted the importance of having a strong semiconductor infrastructure. ‘These chips, these wafers […] batteries, […]

  • By Mihai Matei
  • 3 years ago