How Samsung Became The No. 2 Global Manufacturer of Advanced Chips
Samsung has become the world’s second-largest advanced chipmaker, according to data from market research firm Gartner. The company surpassed Intel in the fourth quarter of 2022, with a market share of 18.3%.
Samsung has dominated the market for memory chips, which are used to store digital data, for more than three decades. But that market has been in disarray. Memory chip costs have fallen precipitously over the past year, and in the current quarter, they are predicted to drop by up to 23% more.
But Samsung is much more than just electronics and home appliances, and there’s another factor that makes it one of the most valuable businesses in the world.
Samsung’s rise to the top of the chipmaking world is the result of a number of factors, including:
In the midst of the devastation, the enormous corporation has discovered growth in another sector of the semiconductor industry and is investing more in its foundry division, which produces bespoke chips for major clients like Qualcomm, Tesla, Intel, and Sony as well as thousands of other smaller players.
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Samsung’s rise to the top of the chipmaking world is good news for the company and its customers. The company’s strong position in the chip market will allow it to continue to invest in R&D and manufacturing, and to develop new and innovative products. This will benefit customers by providing them with access to the latest and greatest chip technology.
According to CNBC.com, Samsung is also adding capacity in its home country of South Korea, spending $228 billion on a mega cluster of five new fabs that are scheduled to come online by 2042.
“They’re spending and spending and spending,” said Dylan Patel of research and consulting firm SemiAnalysis. “And why is that? So they can catch up on technology, so they can continue to maintain their leadership position.”
CNBC recently went inside Samsung’s Austin chip fab, for the first in-depth tour given on camera to a U.S. journalist. While there, we got a rare interview with the head of Samsung’s U.S. chip business, Jinman Han.
A 34-year veteran of the company, Han’s U.S. oversight includes the foundry operations and the memory chips business.
“We really want to be a bedrock for U.S. industry,” Han told CNBC.
In 1978, Samsung established its first American operations in New Jersey. By 1983, the company had opened a new location in Silicon Valley and was producing 64KB DRAM chips, which were widely used in computers.
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