According to South Korean media reports, Samsung Electronics’ memory sector, which has made steady profits in the past, will start to deteriorate seriously in the second half of the year. Therefore, Samsung is expanding the development of its foundry business to balance its current business structure focused on the memory business.
TSMC (2330-TW)(TSM-US) founder Zhang Zhongmou once said that Samsung is TSMC’s most important competitor, and as Samsung concentrates more resources on the foundry business, it is expected to bring a certain degree of pressure to TSMC.
Korean media “Daily Economic News” reported that from Samsung’s second quarter financial report, the memory business contributed as much as 70% of the profit, supporting the group’s operating performance, but with the global economic downturn, the demand for applications such as smartphones and PCs Shrinking, the growth momentum of the memory market in the second half of the year will slow down, and the prospect of the golden rooster industry will weaken, and the profit will decline in the second half of the year.
As a result, Samsung is shifting its focus to the foundry business and developing it into a new growth engine for the memory industry, which faces cyclical market fluctuations.
Benefiting from the demand for high-efficiency computing advanced processes and the steady demand for mature processes in different applications, Samsung’s foundry business revenue and profit in the second quarter both hit record highs over the same period of the previous year. The 3-nanometer process produced by GAA technology has been mass-produced and shipped, and it is ambitious to expand the foundry business.
In the past, it was reported that Samsung intends to spin off the foundry business, but at that time, the profitability of the memory business was greater than that of the foundry. Now that the memory market is not in good condition, the positions of the two sides have reversed. The expected next operational growth momentum.
Samsung Securities, a subsidiary of Samsung Group, recently suggested that Samsung needs to diversify its product portfolio in the foundry field, split the foundry department, and go public in the United States in order to compete with TSMC.
