Samsung is ready to pump an additional $ 116 billion for the battle in the mobile chip market

According to a Bloomberg report, Samsung announced a 10-year investment plan with a record value of up to 116 billion USD with the ambition of taking the lead in the list of the largest mobile semiconductor manufacturers. The world in 2030. Chaebol Korea has in fact been the 'smooth face' name in the ranking of the world's largest mobile memory chip makers over the years. Bloomberg also noted that the semiconductor division accounted for three quarters of total operating income in 2018 by producer Kim Chi. In addition, the market for mobile semiconductor chips is expected to expand further in the next few years, so the decision to focus a strong investment in this area can be considered a smart direction for Samsung.

Samsung is ready to pump an additional $ 116 billion for the battle in the mobile chip market Picture 1

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The impressive sales of semiconductor chip manufacturing division Samsung has made a great contribution not only from the flourishing business of strategic smartphones such as the Galaxy S10 or even the Galaxy Fold, but also from the Partners are increasingly in demand for Samsung components, for example, even Apple's "rival" has little choice other than using screens and magnetic memory. Korean manufacturer.

Going back to the fierce battle in the mobile semiconductor chip market, Samsung's main goal is nothing more than defeating the Taiwan semiconductor manufacturing company TSMC - a true 'bug' in this market. . The strength of TSMC lies in the fact that they are responsible for the design and manufacturing of semiconductor chips for many large OEMs today, including Apple, the leading revenue-generating smartphone manufacturer. world. Besides TSMC, there are still a few other names that can discourage Samsung, notably Qualcomm. However, Samsung and Qualcomm are both competitors and partners in several product lines, as Qualcomm's Snapdragon processor is currently available on most of the world's top devices. , including Samsung Galaxy S10 models in the US market, on the other hand, Samsung's Exynos chip is only used quite limited, mainly on their own smartphones or in products from some homes. Chinese production like Meizu.

Samsung is ready to pump an additional $ 116 billion for the battle in the mobile chip market Picture 2

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Not only that, two other big names in the smartphone world are Huawei and Apple are also cherishing projects to develop their own 'homegrown' processors to avoid dependence on manufacturers. Third party, with Huawei is Kirin chip while Apple is the famous Bionic. Looking at Samsung, the company's Exynos mobile processor line has in fact been around for years, however, they have struggled to keep up with the pace of stronger improvements coming from Huawei and Apple. Therefore, the $ 116 billion investment in the past 10 years is really a 'tonic' for the Exynos product line in particular and Samsung's mobile CPU manufacturing segment in general.

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With new plans to spend more on the task of scaling up the mobile processor chip division, Samsung is expected to need more than 15,000 new jobs related to positions such as research and production. . According to a Bloomberg report, TSMC did not appear to be outdone when the Taiwanese manufacturer decided to approve its budget of more than $ 10 billion in 2019 for the expansion of its production line. With the competition of two people who are "strong for rice, violence for money", it can be said that the battle in the semiconductor chip market is becoming more unpredictable than ever.

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In the long run, Samsung can expect to make a big profit from the stability of its semiconductor manufacturing operations, including memory and processor, rather than consumer products such as phones and phones. Tablet, or Gear smart watch. The reason for this is because consumer products will be strongly influenced by changes in user tastes or unpredictable fluctuations of the market. Meanwhile, seizing the throne in the semiconductor manufacturing market will help Samsung 'raise its knees' to profit regardless of which device it consumes.