Samsung announced a few days ago that it will stay ahead of its Chinese rivals in the chip segment. "Technological hurdles in chips are relatively higher than in other industries," said Kim Ki-nam, head of Samsung's technology solutions division. "Overcoming these obstacles requires more than just large short-term investments."
Kim's division had sales of $100 billion last year, accounting for 45% of the company's total revenue. Samsung has stepped up investment in semiconductor manufacturing in recent years as it tries to crush rivals with memory chips. The South Korean giant wants to maintain its strong position and does not want to feel threatened by Chinese manufacturers.
Samsung is watching closely what the Chinese are doing. Ki-nam said Chinese firms are investing in all types of semiconductors, including memory chips, but warned that technology gaps will not be bridged by short-term investments alone. Samsung is focusing its energy on becoming the leader in the given segment and has set its entire strategy accordingly.
The South Korean company's strategy is to expand its product offering with the second generation of 10nm DRAM and be several steps ahead of the competition. It also wants to develop the third generation of 10nm DRAM and the sixth generation of NAND flash. In addition, Samsung will focus on meeting the growing demand for chips needed for the Internet of Things, 5G and automotive industries.
Source: The Investor
