Samsung Electronics and SK Hynix to nurture non-memory business field
Park Jung Il | comja77@ | 2017-05-15 10:18:26
[Digital Times, Park Jong-il] Samsung Electronics and SK Hynix believe that semiconductor foundry production will increase significantly during the fourth industrial revolution era as they are focusing on related businesses. Samsung Electronics has upgraded its Foundry Team to an independent division, and SK Hynix is pursuing spin-off of the foundry business division.
According to industry sources on May 14, Samsung Electronics has unveiled its foundry team in System LSI division on May 12. The existing system of LSI division focuses on fabless (semiconductor design). This change is due to the foundry market is growing and the existing system has limited business. A Samsung Electronics representative explained, "We will complete the inspections for each team, including the supporting organization based on newly appointed head of the foundry business division, Jong Eun-seung.”
The foundry division is expected to see the uplift effect immediately. It is expected that Samsung Electronics` world ranking of the foundry market will jump to second place from the fourth place last year. A Samsung representative stated, "The commissioned production of the EXINOS application processor (AP) is sold separately, and sales are doubled." According to market researcher IHS Markit, Samsung Electronics` foundry revenue last year was at USD 4.518 billion (about KRW 5 trillion). The industry is analyzing that foundry sales will hit USD 9 billion. This leads to second place in the foundry market, outstripping global foundry second place and third place UMC.
Besides, the Samsung Electronics foundry division is expected to quickly pursue Taiwanese TSMC, the current market leader, as it can be aggressively invested as the team is promoted highly. It is expected that Samsung Electronics will be able to fully pursue the lead-up in micro-process technology by reinforcing its sales force ahead of TSMC. Although Samsung Electronics applied the world`s first 10-nm (nm) pin-filter process last November and TSMC is expected to start mass-producing 10-nm processes only in the first half of this year.
On the other hand, SK Hynix is also accelerating its foundry business. SK Hynix plans to spin off its foundry division in July. The company plans to expand its business by focusing on power semiconductor and other 200-nanometer (nm) order-type foundries, and expanding to general-purpose products. SK Hynix`s foundry sales are only about USD 100 million (approx. KRW 112.7 billion), but the company is making aggressive investments. The foundry market continues to grow as the Internet of Things (IoT) market grows fast. According to IHS Markets based on wafer shipments, the foundry market grew 7.9 % last year. In addition, profitability of the foundry business is also improving due to recent demand for system semiconductor.
A semiconductor industry expert said, "Although the domestic semiconductor industry has been concerned that it needs to move away from the memory-intensive business structure that is sensitive to the market, it is moving in earnest from now on. In the business that can best utilize the micro-process is a foundry, and based on this, the scope to system semiconductors can be broadened. "
By Park Jung Il comja77@
[ copyright ⓒ The Digitaltimes ]
According to industry sources on May 14, Samsung Electronics has unveiled its foundry team in System LSI division on May 12. The existing system of LSI division focuses on fabless (semiconductor design). This change is due to the foundry market is growing and the existing system has limited business. A Samsung Electronics representative explained, "We will complete the inspections for each team, including the supporting organization based on newly appointed head of the foundry business division, Jong Eun-seung.”
The foundry division is expected to see the uplift effect immediately. It is expected that Samsung Electronics` world ranking of the foundry market will jump to second place from the fourth place last year. A Samsung representative stated, "The commissioned production of the EXINOS application processor (AP) is sold separately, and sales are doubled." According to market researcher IHS Markit, Samsung Electronics` foundry revenue last year was at USD 4.518 billion (about KRW 5 trillion). The industry is analyzing that foundry sales will hit USD 9 billion. This leads to second place in the foundry market, outstripping global foundry second place and third place UMC.
Besides, the Samsung Electronics foundry division is expected to quickly pursue Taiwanese TSMC, the current market leader, as it can be aggressively invested as the team is promoted highly. It is expected that Samsung Electronics will be able to fully pursue the lead-up in micro-process technology by reinforcing its sales force ahead of TSMC. Although Samsung Electronics applied the world`s first 10-nm (nm) pin-filter process last November and TSMC is expected to start mass-producing 10-nm processes only in the first half of this year.
On the other hand, SK Hynix is also accelerating its foundry business. SK Hynix plans to spin off its foundry division in July. The company plans to expand its business by focusing on power semiconductor and other 200-nanometer (nm) order-type foundries, and expanding to general-purpose products. SK Hynix`s foundry sales are only about USD 100 million (approx. KRW 112.7 billion), but the company is making aggressive investments. The foundry market continues to grow as the Internet of Things (IoT) market grows fast. According to IHS Markets based on wafer shipments, the foundry market grew 7.9 % last year. In addition, profitability of the foundry business is also improving due to recent demand for system semiconductor.
A semiconductor industry expert said, "Although the domestic semiconductor industry has been concerned that it needs to move away from the memory-intensive business structure that is sensitive to the market, it is moving in earnest from now on. In the business that can best utilize the micro-process is a foundry, and based on this, the scope to system semiconductors can be broadened. "
By Park Jung Il comja77@