Samsung Electronics executives said recently that the company will make acquisitions to increase its share of the mobile processor market and expect to obtain more chip foundry contracts in the next two or three years.
Samsung Electronics is currently the world's largest manufacturer of memory chips, but the company is lagging behind in the non-storage chip processor business. At present, the market is dominated by companies such as Qualcomm, Texas Instruments and Broadcom.
Wong Yiwan, vice president of Samsung's system-on-chip business, said at the International Consumer Electronics Show (CES) in Las Vegas: “We are constantly researching the market and trying to determine the best strategy. There is no reason why we will avoid mergers and acquisitions. For the same reason, we also take other measures to complement each other, such as seeking alliances. It is difficult for a company to be perfect."
Qualcomm, the world’s largest mobile chip maker, announced this week that it has acquired Atheros Communications, a wireless network technology company, for US$3.2 billion. The latter is an important manufacturer of Wi-Fi and Bluetooth chips. The move shows that Qualcomm is eager to become a strong supplier of smartphone and tablet chips.
According to reports, Samsung, which holds a large amount of cash, had intended to acquire Infineon’s wireless chip business, but it was taken by Intel last year.
Samsung’s system-on-chip business has grown strongly this year, driven by strong demand from mobile processors and image sensors, but according to market research firm iSuppli, Samsung’s share of the global mobile chip market is only 3% due to Samsung’s insistence on organic growth. %about.
The system-on-a-chip business accounts for about 20% of Samsung's semiconductor business revenue this year. The department’s most important storage chip business is currently the largest in the world, earning 20 trillion won in revenue in the first half of 2010.
Although Samsung's storage chip business is still relatively small, the division expects that, thanks to the increased popularity of smartphones, tablet PCs and Internet TVs, the business will offset the adverse impact of the slowdown in demand for storage chips.
Wong Yiwan also said that Samsung expects to acquire more outsourcing contracts in the next few years as tighter spending companies reduce investment in capital-intensive chip production plants. Samsung obtained a contract from Toshiba Corp. of Japan last month to produce system chips for the latter.
Wong Yiwan said that Samsung’s foundry business performed well. Many companies are adopting the strategy of fabs, so the demand for foundry service spending has become stronger, and Samsung has also benefited from this.
He said: "Obviously, expanding the foundry business is the focus of our attention. Therefore, in the next two or three years, you may see our company and other companies establish more relationships in the foundry business. â€
In terms of foundry business, Samsung is currently lagging behind Taiwan’s TSMC and UMC, but the company’s aggressive investment plan is increasing its production capacity, which enables it to produce a large number of high-performance chips at a lower cost.
Samsung Electronics is currently the world's largest manufacturer of memory chips, but the company is lagging behind in the non-storage chip processor business. At present, the market is dominated by companies such as Qualcomm, Texas Instruments and Broadcom.
Wong Yiwan, vice president of Samsung's system-on-chip business, said at the International Consumer Electronics Show (CES) in Las Vegas: “We are constantly researching the market and trying to determine the best strategy. There is no reason why we will avoid mergers and acquisitions. For the same reason, we also take other measures to complement each other, such as seeking alliances. It is difficult for a company to be perfect."
Qualcomm, the world’s largest mobile chip maker, announced this week that it has acquired Atheros Communications, a wireless network technology company, for US$3.2 billion. The latter is an important manufacturer of Wi-Fi and Bluetooth chips. The move shows that Qualcomm is eager to become a strong supplier of smartphone and tablet chips.
According to reports, Samsung, which holds a large amount of cash, had intended to acquire Infineon’s wireless chip business, but it was taken by Intel last year.
Samsung’s system-on-chip business has grown strongly this year, driven by strong demand from mobile processors and image sensors, but according to market research firm iSuppli, Samsung’s share of the global mobile chip market is only 3% due to Samsung’s insistence on organic growth. %about.
The system-on-a-chip business accounts for about 20% of Samsung's semiconductor business revenue this year. The department’s most important storage chip business is currently the largest in the world, earning 20 trillion won in revenue in the first half of 2010.
Although Samsung's storage chip business is still relatively small, the division expects that, thanks to the increased popularity of smartphones, tablet PCs and Internet TVs, the business will offset the adverse impact of the slowdown in demand for storage chips.
Wong Yiwan also said that Samsung expects to acquire more outsourcing contracts in the next few years as tighter spending companies reduce investment in capital-intensive chip production plants. Samsung obtained a contract from Toshiba Corp. of Japan last month to produce system chips for the latter.
Wong Yiwan said that Samsung’s foundry business performed well. Many companies are adopting the strategy of fabs, so the demand for foundry service spending has become stronger, and Samsung has also benefited from this.
He said: "Obviously, expanding the foundry business is the focus of our attention. Therefore, in the next two or three years, you may see our company and other companies establish more relationships in the foundry business. â€
In terms of foundry business, Samsung is currently lagging behind Taiwan’s TSMC and UMC, but the company’s aggressive investment plan is increasing its production capacity, which enables it to produce a large number of high-performance chips at a lower cost.
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