The new division will be responsible for manufacturing mobile processors and other non-memoy chips for clients such as Qualcomm and Nvidia.

 

Technology giant Samsung Electronics has formed a new division within its semiconductor business to manufacture contract chips, as the firm seeks to attract to more customers.

The new division will be responsible for manufacturing mobile processors and other non-memory chips for clients such as Qualcomm and Nvidia, competing with firms such as TSM (Taiwan Semiconductor Manufacturing).

The new division will also be supervised by Kim Ki-nam , the president of Samsung under which all chip businesses are encompassed.

This Samsung Electronics movement is not surprising. Analysts have speculated that the South Korean manufacturer will finally divide its chip casting and design operations to make them more efficient and alleviate customer concerns about potential leaks to Samsung’s area competing with them. < / p>

Although revenues from the foundry business remain a small part of Samsung’s total sales , it has experienced strong growth. The research firm IHS has estimated that Samsung smelter revenues rose 86% to $ 4.7 billion in 2016.