Samsung Seeks Refuge in Semiconductor Business, to Invest in New Chip Facility
Published By : 06 Oct 2014 | Published By : QYRESEARCH
As its hold in the smartphone market loosens, Samsung Electronics has turned its focus on the semiconductor business. The South Korean IT giant has announced that it will be spending US$14.7 billion on a new chip unit.
Samsung is already the leader in the memory chip industry and has stated that the new facility will generate over 150,000 employment opportunities in and beyond the city of Pyeongtaek, where the unit will be set up.
The IT company has been beaten by other leading smartphone makers. With U.S.-based Apple Inc. towering over Samsung in the premium device segment and China-based Lenovo Group Ltd. overshadowing it in the mid-to-low-end segments, Samsung has been left with no options but to look deeper to improve its position in the mobile phone industry.
The growing demand for smartphones has given Samsung a chance to venture into the mobile chip business, and the semiconductor wing of Samsung is the perfect solution. In fact, based on investment analysts, the semiconductor division is Samsung Electronics’ only profit-making sector and investing in the new facility could prove beneficial for the company. Analysts also state that the semiconductor business is bound to perform much better than its handset line of operations.
While Samsung has not yet formally decided the exact line of business, the unit in Pyeongtaek will be manufacturing either memory or logic chips. The increasing use of personal computers as well as servers is Samsung’s best hope to improve its stability in the market.