In the chip foundry sector, TSMC is Samsung’s biggest competitor. Currently, the foundry leader TSMC has more than 50% of the market share, while Samsung Electronics is in second place with about 20% market share. Now the South Korean technology giant has just won chip contracts from big names like Cisco and Google.
However, Samsung’s foundry business continues to expand. According to industry insiders, Samsung’s foundry business had its best quarterly result in the second quarter of this year, with sales of about $3.35 billion (4 trillion won).
According to information from ETNews, Samsung received an order from Cisco earlier this year for the development and manufacture of chips. These chips will be used in Cisco’s next-generation telecommunications networks. Similarly, Samsung has also successfully received orders from search giant Google. It is reported that Google has asked for a chip that can be implanted in a sensor that measures human movement and a new application processor (AP).
The Korean company will design and manufacture semiconductor chips that will be used for sensors that can track the movements of the body. Foundries typically produce pre-designed chips, but these new chips can be customized to provide specific functions and technologies for both companies. In other words, these new chips will be manufactured from scratch and developed specifically for Cisco and Google.
In addition to orders from Cisco and Google, Samsung has previously received chip orders from Tesla and Facebook. At the same time, the report also noted that Samsung’s chances of receiving orders from Intel are also increasing.
As a result, Samsung will have to take on the task of designing and mass-producing chips. Cisco is the world’s largest manufacturer of networking equipment, with sales of $50 billion each, while Google is looking to expand its IoT product line. Most likely, Samsung will also receive additional orders. It will also help this Korean brand to get one step closer to the world’s largest foundry.