Samsung will triple chip business market share within five years

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The chip business has been a significant contributor to Samsung’s bottom line over the past few years. Samsung wants to keep the momentum intact so it’s going to work diligently to ensure that it’s able to solidify its position in this market and grow further.

A senior company executive has said that Samsung is planning to triple its contract chip manufacturing business market share within the next five years by aggressively adding new clients.

Samsung spun off the chip manufacturing business as a separate entity of its semiconductor division earlier this year in May. The new entity is solely responsible for manufacturing mobile processors and other non-memory chips. Its clients include the likes of Qualcomm and NVIDIA.

Samsung executive vice president and head of the new foundry division E.S. Jung said that the company is looking to clinch a 25 percent market share in this industry within five years. It’s going to pursue smaller customers alongside big-name clients to fuel growth

The company has already established a strong position in the industry and wants to become a strong No.2 player in the market, according to Jung. Samsung is widely expected to overtake Intel as the world’s top chipmaker by sales this year courtesy of a boom in the memory chip market.

However, it still has a lot of catching up to do. Taiwan’s TSMC held a 50.6 percent market share in contract manufacturing as of last year compared to Samsung’s 7.9 percent. Samsung also trails US-based Global Foundry and Taiwan-based UMC as they had a 9.6 percent and 8.1 percent market share respectively.

The company knows that in order to win major clients it has to demonstrate grasp over advanced manufacturing technologies. Samsung says that it will be able to manufacture 7nm chips by the second half of next year.

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