Samsung 05 years involved in the foundry franchise benefit in subcontractor

Morgan Stanley issued a report pointed out that Samsung will not enter the foundry market at least in 2005, which is beneficial to the semiconductor wafer foundry outside the franchise. Morgan believes that the recent negative news should be the last wave, it is recommended to undertake TSMC when the stock price weakness

Samsung announced last week in the fourth quarter of 2004 earnings, announced LSI strategy, and that may be built to produce 10 thousand pieces of 12 inch wafer facilities before the end of 2005, and all for internal use. Therefore, not only did not establish the Samsung foundry business, also did not plan to become an integrated component factory (IDM)

Morgan has been very worried about the mixed type foundry and low order foundries on the overall impact on the market, Samsung, Morgan worried it will ally with IBM or Chartered, and other companies to become strong competitors, it will bring substantial impact on TSMC has high order technology in foundries, and may take away potential customers. But now Samsung seems likely to take another strategy, making foundry competition pressure to reduce the foundry industry in recent bad news, the first quarter earnings will not be very good, but Morgan believes that this may be the last wave of bad advice, in the share price weakness when undertake its most favored tsmc. Morgan is expected to turn the wafer industry will occur in the second quarter of 2005.