Samsung: The initial expansion of 5nm process chips will take time, and it has gradually improved

Samsung Electronics Co.’s new co-CEO Kyung Kye-hyun revealed that the foundry business will find new customers in China, and the yield rate of chips below 5nm is gradually improving.

According to Reuters, Kyung predicted at a shareholder meeting on the 16th that the annual growth rate of the chip and components sector is expected to be better than the 9% of the global chip market this year, and Samsung will try to expand production capacity to meet the tight global market.

Samsung’s foundry division will seek new customers in high-growth China, while also improving plant operations and expanding production capacity, Kyung said.

When asked by shareholders about the low yield of chips below 5nm, Kyung said that initial expansion will take time, but operations are gradually improving. “Processes are getting more sophisticated and complex, and chips below 5 nanometers are approaching the physical limits of semiconductor devices,” he said.

Kyung said that Samsung plans to optimize production line operations to improve profitability and supply, and continue to improve processes that have already started mass production.

Samsung’s foundry market share expands
Yonhap News Agency reported on the 15th that a TrendForce survey showed that from October to December 2021, Samsung’s foundry market share increased by 1.1 percentage points to 18.3%, while TSMC slightly decreased by 1 percentage point to 52.1%.

According to the report, Samsung is the only one among the top five foundries with an expanded market share in Q4, mainly due to the gradual completion of advanced 5nm/4nm process production capacity and the launch of flagship products from major customer Qualcomm. mass production relationship.

However, the report pointed out that the slow expansion of Samsung’s advanced process capacity is expected to erode Samsung’s overall profitability. The company’s first task should be to “improve the production capacity and yield of advanced processes.”

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