Samsung began to focus its business on memory chips: Report

The Korean media “Daily Economic News” reported that Samsung Electronics’ memory chip business had made steady profits in the past. Due to the serious deterioration of the industrial market in the second half of the year, Samsung began to expand the development of the foundry business to balance the current focus on the memory chip business.

TSMC founder Zhang Zhongmou once said that Samsung is TSMC’s most significant competitor. As Samsung concentrates more resources on the foundry business, it is expected to bring a certain degree of pressure to TSMC.

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Judging from Samsung’s second-quarter financial report, the profit contribution of the memory chip business is as high as 70%. However, with the global economic downturn and shrinking demand for applications such as smartphones and PCs, the growth momentum of the memory chip market will slow down in the second half of the year, and profits will decline in the second half of the year.

Therefore, Samsung is shifting its focus to the foundry business, developing it into a new growth engine to cope with the memory chip industry facing cyclical market fluctuations.

Benefiting from the demand for advanced high-performance computing 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 for the same period of the previous year.

At the end of June and July, it also announced that the 3-nanometer process produced by GAA technology has been mass-produced and shipped, and the foundry business continues to expand.