ã€Global Network Technology Reporter Zhang Yang】 According to Bloomberg News on May 25, Samsung Electronics Co., Ltd. is the world's second largest chip maker, it is increasing investment in semiconductor chip foundry business, the stripping of chip manufacturing business formation The new department to challenge market leader TSMC.
Samsung has improved its chip manufacturing business to demonstrate its independence and its ability to use its internal resources. Samsung also promised customers that it will launch new production processes ahead of competitors and put into operation in the fourth quarter of this year. Kelvin Low, Samsung’s senior director of chip manufacturing marketing, said creating an independent business unit could alleviate some of the concerns of potential customers competing with Samsung’s other businesses.
He said: "We have to really compete in the field of chip foundry. We feel that it is better to establish an independent organization. This can reduce the conflict of interest - although this is not the current real problem - but some customers still have this kind of idea in mind. "Samsung's commitment demonstrates the importance of the chip sector and the growth in demand for chip outsourcing production.
Compared to before, fewer and fewer companies can invest billions of dollars to build factories and develop new manufacturing technologies. TSMC, which is a market leader and produces chips for companies such as Apple, has achieved double-digit growth in revenue for the past five years. In March this year, Intel stated that it will recommit itself to establish a production-to-order chip business, saying that its manufacturing technology still leads Samsung and TSMC.
All three companies are vying for orders from Qualcomm and Apple because the latter only designs their own chips but does not produce them. Samsung does not currently subdivide its revenue from chip production. As the world’s largest memory chip maker, memory accounts for the bulk of Samsung’s total chip revenue. In the first quarter, it contributed 12.12 trillion won to 15.66 trillion won in chip revenue. About 10.5 billion U.S. dollars).
This shows that other chips, including OEMs and chips for internal consumption, have sales of 3.54 trillion won, an increase of 10% compared to last year. However, TSMC’s revenue for the quarter was US$8.53 billion, which is less than half that of Samsung.
Samsung’s chip unit provides two-thirds of company-wide operating profit, and is now competing with Intel and Taiwan Semiconductor Manufacturing Co. to continuously shrink transistor size. The current best technology is the 10-nanometer process.
Samsung said that it is the first to mass-produce this kind of chip, and TSMC also said that it is now producing 10 nanometer chips at full capacity, and production can be rapidly increased in the second half of the year. Samsung said that 8nm technology will be launched later this year and 7nm technology will be launched in 2018. Its 7-nanometer production process will use EUV lithography for the first time - a new version of the chip circuit printing technology.
Samsung said that using this technology can reduce production steps, reduce costs and improve chip performance. The company also said that the introduction of 4 nanometer production technology in 2020, when the transistor array will have a new look, which will change the basic structure of the chip.
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