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Samsung Electronics’ semiconductor division is currently the world’s third largest contract maker of chips, mostly due to the fact that it produces vast amounts of different application processors for Apple as well as its own consumer electronics divisions. However, as Apple is looking at different manufacturers and Samsung wants further grows, the company is eyeing other customers.

“Samsung is eyeing Amazon, Sony and Nvidia as customers to offset the lost volume caused by the Apple’s decision to reduce purchases,” a source with knowledge of the matter revealed to the Korea Times.

At present, Samsung is negotiating on a high level with Sony Corp. and Nvidia Corp., presumably over making their chips for smartphones, game consoles, tablets and maybe even personal computers in the future.

Amazon, which has yet to develop its own application processors for its tablets, smartphones and possibly e-book reading devices, has also talked to Samsung, but without any significant outcome, presumably because Amazon’s chip development is at its early stages.

“Samsung is entering a new chapter in logic chips. It is looking for companies with processor design technology, but without manufacturing facilities,” said one industry observer.

Samsung has competitive process technologies and vast production capacities to satisfy demands from even such huge clients as Apple. The South Korean company is among a few foundries in the world who has leading-edge manufacturing processes, including 32nm and 28nm, and which is on-track to start making logic chips using 20nm and 14nm in the coming year.

According to market tracker IC Insights, in 2012, Samsung almost doubled its foundry sales and surpassed UMC to become the third-largest IC foundry in the world, according to estimates by IC Insights market tracking firm. It is believed that the company’s dedicated semiconductor foundry capacity reached 150 thousand 300mm wafers per month in Q4 2012. Using an average-revenue-per-wafer figure of $3000, Samsung’s IC foundry capacity currently has the potential to produce annual sales of about $5.4 billion.

Tags: Samsung, Amazon, Nvidia, Sony, ARM, Apple, Semiconductor, Business

Discussion

Comments currently: 12
Discussion started: 07/12/13 12:48:40 AM
Latest comment: 07/14/13 02:31:16 PM
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1. 
Samsung could fab AMD HSA SoCs for Sony 4k TVs.
1 3 [Posted by: linuxlowdown  | Date: 07/12/13 12:48:40 AM]
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Yup AMD and Nvidia are the top graphics processor companies, Qualcomm is best at mobile communications, eg LTE Advanced. Though Sammy has been working on 5G itself and producing screens at 3,200p, just 600p off 4k's 3,800 in 13". UD sets are coming down to $700 for 39" soon, with WiFi ac running at 1 GB/s, that's a UD movie in 4 minutes and phone cameras are capable of not only 4k UD, but 8k at 32 MP. Only just today, saw my first free to air broadcast commercial for Sony UD TV.
0 0 [Posted by: Stuart Brown  | Date: 07/14/13 02:06:36 PM]
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2. 
The Japanese TVs only have Japanese chips inside them. That's why are so expensive compared to Korean ones. Also way better quality...
Just saying.
0 2 [Posted by: TAViX  | Date: 07/12/13 06:17:23 AM]
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3. 
Next year ARM goes 64 bit, Samsung goes 14 nm, going more chrome like, would help to avoid bloatware problems, AMD could do well to go in with Sammy on 14 nm, combining their graphics, 64 bit knowledge with ARM power saving.
0 0 [Posted by: Stuart Brown  | Date: 07/14/13 02:31:16 PM]
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