Focus on System-on-chips
The System LSI Division of Samsung Electronics released six new system-on-chip products on February 26, including an application processor (AP), a CMOS image sensor, and a communication chip. It is unprecedented that the division launched as many products at one time. Although no launch event was held on that day, the products are considered to reflect president Woo Nam-seong’s future business strategy for this year.
The president, who is in his fifth year in office, has had hard time due to a less-than-expected performance. The System LSI Division’s slow growth has been highlighted by the Memory Business Division, which has enjoyed an explosive growth for the last three years thanks to the popularity of Samsung’s smartphones. Even the IT & Mobile Division of Samsung Electronics that manufactures smartphones has used Qualcomm processors instead of the Exynos AP.
Under the circumstances, industry insiders are paying great attention to the System LSI Division’s business performance for this year. The six new products are regarded as groundwork for some turnaround.
They are focusing particularly on the sales figures. According to Samsung Electronics, the System LSI Division recorded 3.42 trillion won (US$3.20 billion) in sales in 2008, about one-third of the Memory Business Division’s 11.58 trillion won (US$10.85 billion). However, the former’s sales estimate for last year is 13.73 trillion won, more than 50% of the latter’s estimate for the same year.