Home NewsStock Market News Memory kinetic energy slows down Samsung’s foundry business into a new engine | Anue Juheng – Eurasian Shares

Memory kinetic energy slows down Samsung’s foundry business into a new engine | Anue Juheng – Eurasian Shares

by WOOWinvest
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Memory kinetic energy slows down Samsung’s foundry business into a new engine | Anue Juheng – Eurasian Shares


According to South Korean media reports, Samsung Electronics’ memory sector, which has been making steady profits in the past, will start to deteriorate seriously in the second half of the year. Therefore, Samsung is expanding the development of its foundry business to balance its current business structure focused on the memory business.

Zhang Zhongmou, the founder of TSMC (2330-TW) (TSM-US), once said that Samsung is TSMC’s most important competitor. As Samsung concentrates more resources on the foundry business, it is expected to bring certain benefits to TSMC. degree of pressure.

Korean media “Daily Economic News” reported that from Samsung’s second quarter financial report, the memory business contributed as much as 70% of the profit, supporting the group’s operating performance. However, with the global economic downturn, the demand for applications such as smartphones and PCs has increased. Shrinking, the growth momentum of the memory market will slow down in the second half of the year, and the prospects of the golden rooster industry will weaken, and the profit will decline in the second half of the year.

As a result, Samsung is shifting its focus to the foundry business and developing it into a new growth engine for the memory industry, which faces cyclical market fluctuations.

Benefited from the demand for high-efficiency computing advanced 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 over the same period of the previous year. The 3-nanometer process produced by GAA technology has been mass-produced and shipped, and it is ambitious to expand the foundry business.

In the past, it was reported that Samsung intends to spin off the foundry business, but at that time, the profitability of the memory business was greater than that of the foundry. Now that the memory market is not in good condition, the positions of the two sides have reversed, and the foundry business has become a message from Samsung. expected next operational growth momentum.

Samsung Securities, a subsidiary of Samsung Group, recently suggested that Samsung needs to diversify its product portfolio in the foundry field, split the foundry department, and go public in the United States in order to compete with TSMC.

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