Samsung Electronics is expected to see sales of its non-memory business particularly the system LSI segment boom this year, buoyed by strong demand for handset application processors, CMOS image sensors, power management chips and display driver ICs.

Sales of Samsung's system LSI unit are forecast to register a double-digit increase in 2021, the sources indicated. Samsung's system LSI segment consists of its foundry operations.

Samsung already saw sales of its system LSI segment in the first quarter of 2021 outpace market expectation, and the unit generated about KRW4.5 trillion (US$4.05 billion) in revenue during the quarter, Ajunews cited industry sources as saying.

Samsung's semiconductor business posted revenue of KRW19.01 trillion in the first quarter of 2021, up 8% on year and 5% sequentially.

Samsung disclosed in its available presentation materials that the company's system LSI unit will maximize its capability to supply chips by "strengthening cooperation with the in-house and outsourced foundries" in the second half of 2021. As for its foundry operations, output will be ramping up in the second half of this year as Samsung's Pyeongtaek Line 2 will be in full operation. Samsung also strives to expand its client bases in applications such as HPC, networking and automotive electronics.

In addition, Samsung has announced plans to invest a total of KRW171 trillion in its system LSI and foundry operations through 2030, an increase of KRW38 trillion from the KRW133 trillion targeted previously. The vendor reiterated its goal of becoming the world leader in logic chips by 2030.

Samsung will be expanding its foundry unit to "help fuel entire new industries built on next-generation technologies like AI, 5G and autonomous driving," and has kicked off construction of a new production line in Pyeongtaek scheduled for completion in the second half of 2022. Dubbed P3, the facility will produce 14nm DRAM and 5nm logic semiconductors, both based on extreme ultraviolet (EUV) lithography technology.

By: DocMemory
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