Samsung Electronics Co. backed by cutting-edge nanometer chip-making technology said Friday that it will be creating separate foundry division to expand dominance in pure-play foundry business amid a boom in demand for semiconductors.
The foundry relies on contracts from fabless companies and delivers chips on given designs. Another Korean chipmaker SK Hynix recently announced spinning off its foundry business.
Samsung Electronics believes it could soon expand faster in the lucrative foundry market traditionally dominated by Taiwan names by running the business as a separate division.
Taiwan Semiconductor Manufacturing Co. (TSMC) commands the largest share in the global semiconductor foundry market followed by another United Microelectronics Corp. (UMC) and the U.S.-based GlobalFoundries.
According to market data provider HIS, Samsung Electronics’ revenue from foundry business jumped 78.6 percent to $4.52 billion last year from the previous year.
It would be easier for Samsung Electronics to draw contracts as a separate division. Apple for instance has been reluctant in ordering application processing chips from Samsung as it competes directly with the company in smartphone market.
Shares of Samsung Electronics finished Friday at 2,291,000 won ($2,031.03), up 16,000 won or 0.7 percent from the previous session.
By Kim Dong-eun
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