Division effect of Industry Ministry ? Samsung Electronics to target “No.2 in semiconductor foundry”
Park Jung Il | comja77@ | 2018-05-01 14:48:22
Samsung Electronics is now targeting sales of more than USD 10 billion (about KRW 10.7 trillion) this year and second place in the industry in its foundry business, however, if capacity expansion and micro-process introduction continue smoothly, there is a possibility that Taiwan TSMC will be able to establish a two-tiered system.
According to industry sources on April 30, Samsung Electronics internally said its foundry division`s sales were more than USD 10 billion last year (USD 4.6 billion). In fact, Samsung Electronics said in its Q1 earnings conference call that it will "earn more than USD 10 billion in foundries this year and be in second place."
The reason why Samsung Electronics is confident in the foundry business is that it will fall into the business division in the semiconductor business in May last year, and sales of system semiconductor production such as AP (application processor) and the industry expects this volume to be about USD 5 billion more than last year`s sales.
In addition to these internal factors, actual sales growth is also expected. Samsung Electronics is expected to begin mass production of next-generation APs including Samsung Electronics and Qualcomm`s 5G communication chip, starting the mass production of 7-nanometer (nm) extreme ultraviolet exposure equipment (EUV) process products in the second half of the industry.
Samsung Electronics and Taiwan`s TSMC are the only companies that have announced that they will start the 7-nm process foundry this year. Intel is expected to apply the 7-nanometer process in the next two years, including the global foundry, which is the second-largest in the industry. For the time being, Samsung Electronics and TSMC will likely become more dominant in the foundry market, especially in high value-added products.
On the other hand, demand for foundries related to blockbuster chains, including virtual currencies, is also positively affecting SEC. Samsung Electronics said, "We have a lot of orders related to virtual currency mining and expect to drive earnings this year."
The industry also expects additional sales to rise if Samsung Electronics starts operating facilities for EUV (Extreme Ultraviolet Exposure Equipment), which is invested by US $ 6 billion by 2020, from next year. EUV can use microscopic wavelengths as a light source to draw ultrafine circuits at once. Samsung Electronics plans to use the EUV to complete the development of the 4-nano process in 2020.
An industry expert stated, "Samsung Electronics is already building the Yanggang system with TSMC, which is the No. 1 company in the fine process competitiveness after 2020, when the Hwaseong EUV line is in full operation.
According to market researcher IC Insights, Samsung Electronics foundry sales rose 4 % to USD 4.6 billion last year. Previous year TSMC ranked first in global foundries, at USD 32.163 billion followed by US global foundries (USD 6.06 billion) and Taiwan`s UMC (USD 4.89 billion). The total revenue of the top eight companies was USD 55.13 billion, or 88% of the total (USD 62.33 billion).
By Park Jung Il comja77@
[ copyright ⓒ The Digitaltimes ]
According to industry sources on April 30, Samsung Electronics internally said its foundry division`s sales were more than USD 10 billion last year (USD 4.6 billion). In fact, Samsung Electronics said in its Q1 earnings conference call that it will "earn more than USD 10 billion in foundries this year and be in second place."
The reason why Samsung Electronics is confident in the foundry business is that it will fall into the business division in the semiconductor business in May last year, and sales of system semiconductor production such as AP (application processor) and the industry expects this volume to be about USD 5 billion more than last year`s sales.
In addition to these internal factors, actual sales growth is also expected. Samsung Electronics is expected to begin mass production of next-generation APs including Samsung Electronics and Qualcomm`s 5G communication chip, starting the mass production of 7-nanometer (nm) extreme ultraviolet exposure equipment (EUV) process products in the second half of the industry.
Samsung Electronics and Taiwan`s TSMC are the only companies that have announced that they will start the 7-nm process foundry this year. Intel is expected to apply the 7-nanometer process in the next two years, including the global foundry, which is the second-largest in the industry. For the time being, Samsung Electronics and TSMC will likely become more dominant in the foundry market, especially in high value-added products.
On the other hand, demand for foundries related to blockbuster chains, including virtual currencies, is also positively affecting SEC. Samsung Electronics said, "We have a lot of orders related to virtual currency mining and expect to drive earnings this year."
The industry also expects additional sales to rise if Samsung Electronics starts operating facilities for EUV (Extreme Ultraviolet Exposure Equipment), which is invested by US $ 6 billion by 2020, from next year. EUV can use microscopic wavelengths as a light source to draw ultrafine circuits at once. Samsung Electronics plans to use the EUV to complete the development of the 4-nano process in 2020.
An industry expert stated, "Samsung Electronics is already building the Yanggang system with TSMC, which is the No. 1 company in the fine process competitiveness after 2020, when the Hwaseong EUV line is in full operation.
According to market researcher IC Insights, Samsung Electronics foundry sales rose 4 % to USD 4.6 billion last year. Previous year TSMC ranked first in global foundries, at USD 32.163 billion followed by US global foundries (USD 6.06 billion) and Taiwan`s UMC (USD 4.89 billion). The total revenue of the top eight companies was USD 55.13 billion, or 88% of the total (USD 62.33 billion).
By Park Jung Il comja77@