Samsung expects sharp decline in chip sales to continue into next year

Samsung's second-quarter financial report showed that Samsung's memory chip business contributed as much as 70% of the profit, but with the global economic downturn, the demand for applications such as smartphones and PCs shrank, and the memory chip market grew in the second half of the year. Momentum will slow. Faced with this situation, Samsung began to expand its foundry business.

In July of this year, Samsung announced that its 3-nanometer process chips produced by GAA technology have been successfully shipped. According to a report by The Korea Herald today, Kyung Kye-Hyun, head of Samsung's semiconductor division and co-CEO of the company, said at a media conference that by the end of next year, Samsung's chip foundry business will be greatly improved.

Kyung also said that Samsung expects the sharp decline in chip sales to continue into next year. "The second half of the year looks bad, and for now, it doesn't look like there's a clear momentum to improve next year," he said. However, regardless of the chip sales prospects, Samsung will continue to develop its foundry business and remain competitive.

Data from market research firm TrendForce shows that in the first quarter of 2022, TSMC's share of the global chip foundry market was 54%, more than three times that of Samsung.

A Samsung official said in July this year: “Currently, we are restructuring our system-on-chip (SoC) business model and are formulating a plan to strengthen our mid- to long-term competitiveness.”

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