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Samsung may build new foundry plant in Europe and outsource more chips

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Last updated: October 19th, 2022 at 14:25 UTC+02:00

Samsung may have developed a new strategy to reduce the risk of supply disruptions to its semiconductor clients. For one, the foundry division is reportedly considering building a new chip manufacturing plant. In addition, Samsung’s chips business may be looking for new partners to rely more on outsourcing.

Samsung officials cited by the Korean media said today that the company in the process of hiring new talent for its memory, foundry, and LSI divisions. Samsung wants to strengthen its semiconductor business by focusing more on SoC and automotive chip manufacturing. And to provide supply security to its clients, Samsung may want to build a new foundry plant. The location of this new factory isn’t entirely clear, but it may be constructed in Europe.

Samsung Securities now says that in order for the company to strengthen its automotive chip business, “it needs to build a factory in Europe, where a number of automakers and part makers are located.”

Last year, the European Union said it is considering building an advanced semiconductor factory to build a stronger local supply chain. Reports back then suggested that Samsung may be involved in the project.

Samsung to offer more security through outsourcing

Outsourcing may be another component of Samsung’s alleged plan to create a risk-free semiconductor distribution chain. As of now, Samsung System LSI manufactures advanced chips through its in-house foundry. However, it also outsources chips, including display driver ICs and image sensors, to Taiwan’s United Microelectronics Corp. (UMC).

According to the latest reports, Samsung is now trying and hoping to outsource chips to more Taiwanese foundries. Vanguard International Semiconductor Corp. (VIS) and Powerchip Technology Corp. count as potential future outsourcing partners.

BusinessGeneral EuropeSamsung FoundrySamsung SemiconductorSystem LSITaiwan
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