Samsung Electronics increases the team of chip developers to strengthen its business in the field of creating single-chip systems. Earlier, the South Korean giant separated the contract manufacturing of microcircuits into a new unit.
As reported by the publication Business Korea, citing industry sources, about 200 employees of the consumer electronics division of Samsung went into the structure of LSI, which is engaged in the development of processors, including those used in the company's own smartphones. Until 2018, it is planned to additionally attract at least 1,000 people to this unit.
In May 2017, Samsung created a separate division for contract manufacturing of chips, which makes the company expect to attract more customers in the fight against Taiwan Semiconductor Manufacturing Co. (TSMC). The new structure, formed in the semiconductor business of Samsung, will be responsible for manufacturing mobile processors and other non-memory chips for Qualcomm, Nvidia and other customers.
This reorganization is designed to increase business efficiency and appease competing client companies that are afraid of technology leaks.
According to IHS analysts, Samsung's revenue from contract manufacturing of microcircuits in 2016 was $ 4.7 billion, which is 86% more than a year ago. This business so far brings the Corporation a small part of the proceeds.
Currently, the semiconductor business of Samsung is divided into three divisions: the manufacture of memory chips, the contract production of semiconductors and the development of processors.
According to forecasts of IC Insights analysts, in the second quarter of 2017 Samsung's revenues from semiconductor products sales will grow by 7.5% and reach $ 14.9 billion, as a result of which the company can for the first time outstrip Intel in the list of the largest (in terms of revenue) chipmakers. Intel expects quarterly revenues of $ 14.4 billion.
The rapid growth in Samsung's performance was supported by a significant rise in price of DRAM and NAND flash chips, which was observed in 2016 and continued in 2017. Although in the second half of this year, price growth should slow down, the IC Insights forecast provides that the volume of the DRAM-memory market in money this year will increase by 39%, and the revenue in the NAND flash segment will rise by 25%.