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Samsung Electronics Decides to Open Its Foundry Fab to LG Group Firm
A Move Toward Win-Win Growth with SMEs
Samsung Electronics Decides to Open Its Foundry Fab to LG Group Firm
  • By Kim Eun-jin
  • April 23, 2019, 10:48
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Samsung Electronics has decided to open its foundry fab to small and mid-sized Korean companies.

Samsung Electronics has decided to open its foundry fab to small and mid-sized Korean companies including Silicon Works, a fabless company that belongs to LG Group. The decision was made in order to rev up Korea’s weak semiconductors ecosystem and promote win-win growth between small and big enterprises.

Samsung's foundry division has decided to expand its customer portfolio to Korean companies including Silicon Works, veering away from its focus on large overseas companies such as Qualcomm.

At present, Samsung’s foundry division has only a few Korean partners including Telechips. Most small and mid-sized fabless companies are placing orders with Taiwanese foundry companies or DB Hitech, a Korean company. "If Samsung opens its door to Korean fabless companies, it will encourage more talented engineers to engage in the non-memory sector such as semiconductor design," said an industry analyst.

"By 2030, we will be the world's number one player in the non-memory sector," said Lee Jae-yong, vice chairman of Samsung Electronics, earlier this year. World Semiconductor Trade Statistics (WSTS) estimated the world non-memory market at US$233.7 billion in 2018, about 1.5 times that of memories (US$156.8 billion).