Samsung prepares $116 billion war chest for mobile chips fight

Samsung announced a 10-year, $ 116 billion plan to take the lead as the world's first processor manufacturer by 2030, Bloomberg reported today. The Korean chaebol already enjoys the first position in terms of the sale of mobile memory chips, and Bloomberg notes that its semiconductor division accounted for three-quarters of its operating income for 2018. That is, no matter how much we focus on Samsung's consumer products such as the Galaxy S10 and the Galaxy Fold year's failure candidate, the company's money is mainly obtained from the internal chips that power and power consumer electronics. Even Apple has no choice but to use the screens and memory of Samsung.

What Samsung is trying to do now is to compete with companies similar to those of TSMC (Taiwan Semiconductor Manufacturing Co.), which performs manufacturing tasks for companies that design their own devices. chips, like the apple. Samsung is interested in a part of that business, but will also continue to design chips, so it will face companies like Qualcomm, whose Snapdragon processors abound among the flagship Android devices, including Samsung in the United States. 19659003] Huawei and Apple have developed successful internal processor designs, with their respective Kirion 980 and A12 Bionic chips, header devices such as the P30 Pro and the iPhone XS. Samsung's Exynos mobile processors line has also existed for years, but it has struggled to keep up with Apple's and Huawei's more aggressive improvement index.

With its new plans to spend a lot on strengthening its mobile processor division, Samsung anticipates creating 15,000 new research and production jobs. TSMC, as noted by Bloomberg, is spending approximately the same on an annual basis, with a budget of 2019 north of $ 10 billion. Therefore, this is a big business based on very small chips, and there are no guarantees that Samsung's investment will necessarily be worth it.

In the long run, Samsung can expect more stability from its semiconductor production, both from memory and from processors. the consumer products side that includes Galaxy phones, tablets and watches. The latter is subject to the fickle tastes of the popular market, while establishing a leadership in the first will mean that Samsung's profits do not matter who sells the final device.

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