Shares of Samsung Electronics rose more than 60 percent this year from the start of 2019, hitting a new record high. The rise was attributed to an upbeat outlook on the price recovery of South Korean 온카지노 tech giant memory chips as the world's No. 1 player.
Memory chips play a crucial role for Samsung, which has a variety of businesses, including smartphones and theme parks, but due to price fluctuations, Samsung Electronics has been diversifying its semiconductor business. Samsung Electronics is aiming to create another major revenue source as Samsung's smartphone market, the world's No. 1 producer, has been found to be saturated and stagnant.
The Suwon-based tech firm is spending billions of dollars strengthening its technology sector in areas such as artificial intelligence and 5G, as well as semiconductors that are empowering countless devices. Decades ago, Samsung’s late founder Lee Byung-chull bet big on semiconductors that helped increase the company and his family’s wealth. His son, Lee Kun-hee, recently topped South Korea's 50 richest people with a net worth of $16.8 billion, while his grandson Jay Y. Lee was fourth with $6.1 billion.
Today in Asia
Samsung Electronics announced in April last year that it will invest a total of 133 trillion won (116 billion won) over the next 10 years in two areas - System LSI (non-memory chips such as application processors) and foundry (contract chips manufacturing).
In the case of chaebol, whose combined market capitalization is about US$330 billion, Samsung Electronics is making huge investments by analysts who question whether it will be able to secure market share from Qualcomm and TSMC, the leaders in the mobile processor and foundry sectors, respectively.
Mobile Processor
Samsung Electronics Co., the world's largest smartphone maker, can cut costs and increase efficiency by using its own-developed processors. Samsung Electronics ranks third in the mobile processor market with 16 percent in the third quarter of last year, trailing Qualcomm with 31 percent and Media.According to a report by IHS Markit earlier this month, tek is 21 percent.
According to the IHS Market report, Samsung Electronics secured market share from Qualcomm by using mobile processors in its own devices. Samsung Electronics used Exynos chips for about 75.4 percent of its Galaxy devices, up from 61.4 percent the previous year.
But that won't be enough. Korean companies need more outside customers, and this requires them to compete with Qualcomm's high-performance Snapdragon processor.
Even when Samsung makes mobile processors as good as Snapdragon chips - Roger Shen, vice president of Gartner Research - it expects already the largest smartphone makers to use their own chips. According to the IHS Market report, Apple has its own A-series processor and Huawei is also gradually using Kirin chips.
In fact, Vivo is currently the only major smartphone maker using Exynos chips, says Shen. Vivo uses Samsung’s chips because they have a long-standing business relationship with Samsung, Shen says. In addition, the Chinese smartphone maker needs an alternative to San Diego-based Qualcomm. "With Qualcomm, it would be very difficult to negotiate prices and make differentiated products," he explains.
And trade tensions between the United States and China helped Samsung increase sales to Chinese smartphone makers. Vivo will continue to use Qualcomm and Meditech, but it is highly likely that it added Samsung to diversify away from Qualcomm during the unpredictable trade dispute between the U.S. and China, said Phil Solis, director of IDC Research.
More information on Forbes: Sino-US trade deals, limited mountaineering on Huawei, hardly a relief plan.
The situation in which the U.S. deployed Huawei is being cautious in the long term in which Chinese OEMs rely heavily on U.S. semiconductor suppliers, he added. Since last year, the U.S. government has blocked Huawei from buying technology for national security concerns.
Major Chinese smartphone makers include Vivo’s sister brands Oppo and Xiaomi. Both companies are considering using Exynos chips, but have yet to decide, Shengg says.
Samsung's most difficult task is the foundry market, dominated by TSMC. Taiwanese chip makers account for 50 percent of the market share, while Samsung has about 20 percent, according to TrendForce data.
TSMC has had a significant edge in the foundry since it was established in 1987 by its billionaire founder Maurice Chang. It is far ahead of Samsung in terms of technology and production capacity, and has no plans to slow it down. Last year, TSMC spent $15 billion on technology and capacity in 2019, about 50 percent more than originally planned. And earlier this month, the company said it will increase its capital spending by $1 billion in 2020.
온카지노 | 99UTE.COM |
Memory chips play a crucial role for Samsung, which has a variety of businesses, including smartphones and theme parks, but due to price fluctuations, Samsung Electronics has been diversifying its semiconductor business. Samsung Electronics is aiming to create another major revenue source as Samsung's smartphone market, the world's No. 1 producer, has been found to be saturated and stagnant.
The Suwon-based tech firm is spending billions of dollars strengthening its technology sector in areas such as artificial intelligence and 5G, as well as semiconductors that are empowering countless devices. Decades ago, Samsung’s late founder Lee Byung-chull bet big on semiconductors that helped increase the company and his family’s wealth. His son, Lee Kun-hee, recently topped South Korea's 50 richest people with a net worth of $16.8 billion, while his grandson Jay Y. Lee was fourth with $6.1 billion.
Today in Asia
Samsung Electronics announced in April last year that it will invest a total of 133 trillion won (116 billion won) over the next 10 years in two areas - System LSI (non-memory chips such as application processors) and foundry (contract chips manufacturing).
In the case of chaebol, whose combined market capitalization is about US$330 billion, Samsung Electronics is making huge investments by analysts who question whether it will be able to secure market share from Qualcomm and TSMC, the leaders in the mobile processor and foundry sectors, respectively.
Mobile Processor
Samsung Electronics Co., the world's largest smartphone maker, can cut costs and increase efficiency by using its own-developed processors. Samsung Electronics ranks third in the mobile processor market with 16 percent in the third quarter of last year, trailing Qualcomm with 31 percent and Media.According to a report by IHS Markit earlier this month, tek is 21 percent.
카지노사이트 |
But that won't be enough. Korean companies need more outside customers, and this requires them to compete with Qualcomm's high-performance Snapdragon processor.
Even when Samsung makes mobile processors as good as Snapdragon chips - Roger Shen, vice president of Gartner Research - it expects already the largest smartphone makers to use their own chips. According to the IHS Market report, Apple has its own A-series processor and Huawei is also gradually using Kirin chips.
In fact, Vivo is currently the only major smartphone maker using Exynos chips, says Shen. Vivo uses Samsung’s chips because they have a long-standing business relationship with Samsung, Shen says. In addition, the Chinese smartphone maker needs an alternative to San Diego-based Qualcomm. "With Qualcomm, it would be very difficult to negotiate prices and make differentiated products," he explains.
And trade tensions between the United States and China helped Samsung increase sales to Chinese smartphone makers. Vivo will continue to use Qualcomm and Meditech, but it is highly likely that it added Samsung to diversify away from Qualcomm during the unpredictable trade dispute between the U.S. and China, said Phil Solis, director of IDC Research.
More information on Forbes: Sino-US trade deals, limited mountaineering on Huawei, hardly a relief plan.
The situation in which the U.S. deployed Huawei is being cautious in the long term in which Chinese OEMs rely heavily on U.S. semiconductor suppliers, he added. Since last year, the U.S. government has blocked Huawei from buying technology for national security concerns.
Major Chinese smartphone makers include Vivo’s sister brands Oppo and Xiaomi. Both companies are considering using Exynos chips, but have yet to decide, Shengg says.
Samsung's most difficult task is the foundry market, dominated by TSMC. Taiwanese chip makers account for 50 percent of the market share, while Samsung has about 20 percent, according to TrendForce data.
바카라사이트 |
댓글
댓글 쓰기