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Samsung retains chances to become the largest producer of semiconductor products


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 Samsung retains chances to become the largest producer of semiconductor products


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POSTER: computer news   ||    SAMSUNG RETAINS CHANCES TO BECOME THE LARGEST PRODUCER OF SEMICONDUCTOR PRODUCTS

DATE:2017-07-05

Business publications yesterday actively discussed the statements of Samsung , which promised to invest more than $ 18 billion in the near future in expanding production capacity "around the world", although South Korean enterprises in the investment plans of the semiconductor giant were the first in line.  In addition to factories for the production of mobile processors and various types of memory, Samsung wants to invest in expanding the production of displays such as OLED, which are used by modern smartphones.  It took only two years to build a new enterprise in Pyeongtaek, which has already started mass production of 64-layer V-NAND memory chips.

As explained by Reuters referring to industry analysts, since the second quarter of this year, Samsung can become the leader in market share among semiconductor manufacturers.  This type of activity brings to the Korean giant 46.5% of operating profit, and the demand for memory continues to grow, which creates the prerequisites for further strengthening of Samsung's position in this segment of the market.  In the second quarter, according to forecasts of the majority of experts, Samsung's operating profit will increase by 67% to $ 11.4 billion. In the current quarter, it may exceed $ 12 billion.

In terms of revenue in the first quarter, Samsung controlled 40.4% of the global market for memory chips.  By the way, the division of Samsung also controls 90% of the market forOLED-panels for smartphones, so that in this activity area  the planned investments tend to contribute to the strengthening of the brand's positions.  Since 1991, Intel is ranked as the largest player in the semiconductor market, and Samsung has a real chance to squeeze the leader, slightly confused in the search for a further development vector.  It is important to understand that Samsung's revenue growth is supported by high prices for memory, namely, in terms of money, the market share of a particular manufacturer is taken into account.

It is noteworthy that even against the backdrop of such plans to expand production capacity, analysts are not inclined to believe in the rapid decline in prices for memory chips.  Demand from the server segment, according to them, is growing at a faster pace.


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 Samsung retains chances to become the largest producer of semiconductor products


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