Report: Q4 Samsung Electronics foundry business revenue expected to grow 19% year-on-year

Samsung Electronics’ foundry business is expected to generate revenue of $3.4 billion in the fourth quarter, according to a market report from TrendForce, a market tracker, which is expected to grow 19.3 percent year-on-year. In addition, TrendForce expects overall revenue in the global contracting market to grow 6 percent in the fourth quarter from a quarter earlier, as companies cut inventories and seasonal demand was better than expected.

Report: Q4 Samsung Electronics co-worker business revenue expected to grow 19% year-on-year

While Samsung Electronics’ contract business is on track to grow 19 per cent year-on-year, that performance is not enough to close the market share gap between it and TSMC.

TSMC is a leader in the semiconductor contract industry. The company’s share of the global contract market is expected to be 52.7 per cent in the fourth quarter, up from 50.5 per cent in the previous quarter, data showed, cementing its position as leader.

In second place will be Samsung Electronics, which is expected to reach 17.8 per cent in the fourth quarter of this year, down 0.7 per cent from the previous quarter.

Samsung Electronics is followed by Global Foundries and Lianhua Electronics, the US chipmakers, which account for 8 per cent and 6 per cent of the global contractmarket, respectively.

In April, Samsung announced that it would invest 133 trillion won ($110 billion) by 2030 to diversify its logic chip and chip contractbusiness to diversify its portfolio, accelerating its global semiconductor industry’s market share and competing with companies such as Intel and Qualcomm.

Samsung’s plan suggests that the company will not only have to do smart chip processors, but also catch up with TSMC in the area of chip contracting.

In May last year, Samsung Electronics also set up a research and development center for its chip contract business. The chip foundry business refers to the design and manufacture of chips for companies that do not have a semiconductor manufacturing facility.

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