Samsung cut foundry has been the flagship high-end high order

American financial magazine Barron (Barron's) on the day before the Samsung electronics semiconductor division president and CEO Huang Changgui had an exclusive interview, Huang Changgui said that Samsung will cut into the large-scale foundry market, the second half of this year will enter mass production stage.

According to Huang Changgui revealed that Samsung foundry products are mainly high-end chip products, and TSMC market positioning is not the same. He does not want to say what customers have been supported. But informed sources, Qualcomm has been listed in the Samsung foundry business customer list.

It is reported that by the end of 2004, Samsung Electronics has announced its entry into the foundry market, but in the past 8 months, it has not put the actual action, after Samsung Semiconductor Division has been emphasis on memory and flash memory products. However, the second quarter of 2005 (4 ~ June) Samsung net profit halved in the premise of the NAND type flash memory is often more than 20% of the average price decline, to enhance profitability semiconductor sector to support the overall performance of the company, Samsung finally decided by virtue of advanced manufacturing technology advantage cut in foundry field.

In order to cut the attitude of the IDM foundry market, Samsung electronics manufacturers are not the first one, IBM microelectronics sector has long been a number of graphics chips and communications chip manufacturers oem. Market research firm iSuppli estimates, 2004 Samsung foundry revenue reached $116 million, $878 million, and IBM microelectronics TSMC's $7 billion 680 million, or $975 million revenue gap in core international is big, but it can achieve the practical benefits of the production capacity.

Causeway Capital analyst Jamie Doyle investment agency pointed out that Samsung cut foundry field, although a time should not drop the whole industry average price, but it can bring fast "points" for the Samsung effect. According to the latest earnings data, TSMC 2004 gross margin was 33.3%, Samsung gross margin of only 21%, in the next few quarters of the mobile phone sector gross margin could decline under the condition of Samsung by foundry to enhance the semiconductor sector gross margin is an inevitable trend.

Huang Changgui said, in the product diversification strategy under the guidance of Samsung Semiconductor sector is expected in 2006 net revenue were more than the 2005 level, although Samsung is still ranked in the Intel (Intel), ranked the world's second largest semiconductor manufacturers, but the next few years will be more than Intel Samsung Samsung point the day and await for it that in 2004 revenue growth 55%, Intel's revenue increased by only 13% over the same period.