Samsung is now officially a foundry, spins off chip making into separate business


Samsung knows there's money to be made producing semiconductor chips for others by demand, so it makes all kinds of sense that the company has formed a contract chip manufacturing division. Sammy has the tech and capacity to manufacture cutting-edge chipsets for the likes of Apple, Nvidia, and Qualcomm. With a dedicated foundry, It's not a problem for Samsung to line up among the world's premier chip fabricators, such as TSMC and Globalfoundries.

Analysts and those observing Samsung's success with chip making have been thinking along the same lines for a long time, so the news hardly comes off as surprising at all. Although foundry operations make a relatively small percentage of Samsung's overall revenue, it's one of its fastest-growing businesses. IHS analysts estimated an 86% year-over-year growth for it in 2016.

Let's wish Samsung's chip foundry smooth sailing and may many fine chipsets descend from its production lines!

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source: Reuters

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12 Comments

1. Well-Manicured-Man

Posts: 688; Member since: Jun 16, 2015

Makes sense for Samsung. This way they can profit from external customers helping them to amortize Samsung's manufacturing equipment. With shorter and shorter life spans paying off production equipment becomes harder and harder.

2. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Intime to beat intel

3. trojan_horse

Posts: 5868; Member since: May 06, 2016

Intel is not a player in the mobile chipset business.

6. demonspeedster

Posts: 2; Member since: Jan 31, 2014

They make modem chips for smartphones

8. hung2900

Posts: 966; Member since: Mar 02, 2012

Actually Samsung has nearly beated Intel in Semiconductor sale.http://www.androidauthority.com/samsung-overtake-intel-biggest-chipmaker-q2-768557/

4. piyath

Posts: 2445; Member since: Mar 23, 2012

That's what tgey should do. Why making hilarious laggy phones like S8 which don't have an appeal like in the past anyway. They are out of ideas now. So better to make components for big boys and earn some money while you can.

7. John-Knotts

Posts: 380; Member since: Feb 28, 2015

Yeah right. Even though their phones outsell and out preform whatever piece if s**t you're using. Get outta here with that nonsense lol

12. tedkord

Posts: 17356; Member since: Jun 17, 2009

This is him every time he sees a review naming the S8 the best phone available. https://ibb.co/mafq5k

9. zebraman

Posts: 59; Member since: Sep 11, 2013

What drugs are you taking the S8 is the best looking phone on the market. Clearly you have never used one before

11. tedkord

Posts: 17356; Member since: Jun 17, 2009

Your pain is palpable. And funny.

5. Macready

Posts: 1821; Member since: Dec 08, 2014

More competition than ever, yet their best selling phone since 2013. Cool try though.

10. Settings

Posts: 2943; Member since: Jul 02, 2014

Is that so.

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