Samsung expects a sharp decline in chip sales to continue into next year, but will continue to develop wafer foundry business

CTOnews.com9, March 7 news, Samsung's second-quarter results show that Samsung memory chip business profit contribution of up to 70%, but with the global economic downturn, demand for applications such as smartphones and PC shrinking, the growth momentum of the memory chip market will slow in the second half of the year. Faced with this situation, Samsung began to expand its wafer foundry business.

In July, Samsung announced that its 3nm process chips using GAA technology had been successfully shipped. The head of Samsung's semiconductor division and co-CEO Kyung Kye-hyun of the company said at the media conference that Samsung's chip manufacturing business will be greatly improved by the end of next year, The Korea Herald reported today.

Kyung also said Samsung expects a sharp decline in chip sales to continue into next year. "the situation in the second half of this year looks very bad, and at present, the momentum of improvement next year does not seem obvious," he said. However, regardless of the future of chip sales, Samsung will continue to develop its wafer foundry business to remain competitive.

CTOnews.com learned that TSMC's share of the global chip contract market was 54% in the first quarter of 2022, more than three times that of Samsung, according to market research firm TrendForce.

Samsung officials said in July: "We are currently restructuring our system on Chip (SoC) business model and are working on a plan to enhance our medium-and long-term competitiveness."