Kim Ki-nam, who heads the device solutions division at Samsung Electronics Co., speaks at Samsung Electronics general meeting of shareholders at a convention center in Suwon, 46 km south of Seoul, on March 17, 2021. (Yonhap)
SEOUL, March 17 (Korea Bizwire) – Samsung Electronics Co., the world’s largest memory chip maker, said Wednesday it expects to see demand growth in various chip products with the economic recovery despite concerns over the novel coronavirus pandemic.
Kim Ki-nam, who heads Samsung’s device solutions (DS) division, said that “uncertainties” will continue this year, but global chip demand will increase.
“We expect to see improved economic growth this year, although uncertainties like the U.S.-China conflict and currency rate will continue,” Kim said at an annual meeting of Samsung shareholders in Suwon, 46 kilometers south of Seoul.
“Against this backdrop, 5G, artificial intelligence (AI) and Internet of Things (IoT) are spreading across the industry, and this will lead to demand growth of various semiconductors that are the base of digital technologies.”
Kim said Samsung will focus on bolstering its technology leadership in the chips business this year.
In the memory business, the South Korean tech giant will concentrate on developing the fourth-generation 10-nanometer (nm) level DRAM and the seven-generation V-NAND, according to Kim.
In the foundry sector, where Samsung is trying to catch up to the industry leader TSMC, Kim said Samsung plans to mass-produce third-generation 5nm products, and further advance its 3nm node process technology.
Kim admitted that Samsung is behind TSMC when it comes to production capacity and the number of customers since the company began its foundry business later than its Taiwanese rival. However, he said the gap between the two will decrease.
“There is no problem in our competitiveness in node technology, and we will try to beef up our production capacity in time by making investments efficiently,” he said.
Kim said the company is examining its merger and acquisition (M&A) plans. Samsung earlier said it aims to clinch M&A deals in the upcoming years, which many expect to happen in the chipmaking sector.
“We are looking at areas where we can reinforce our presence in the existing business or create synergy with it,” he said. “Due to uncertainties, we cannot say when it will happen, but we will try to explore our future growth engine through strategic M&A deals.”
Shareholders of Samsung Electronics Co. attend the company’s 52nd annual shareholder meeting in Suwon, 46 km south of Seoul, on March 17, 2021. (Yonhap)
For its mobile business, Samsung said the global smartphone market will also grow, recovering from the COVID-19 pandemic and increased demand of 5G.
Koh Dong-jin, chief of Samsung’s IT & Mobile business division, said Samsung will continue to introduce “differentiated” flagship smartphones to expand sales.
“We will expand our 5G product portfolio to mid-low sectors and introduce lineups that meet each region’s interest,” he said. “We also aim to popularize the foldable smartphone category.”
Koh also emphasized that Samsung will expand the Galaxy ecosystem covering its smartphone and wearable device products by leveraging its cooperation with global partners.
When it comes to the network equipment business, Koh expected telecom service producers to expand their investments due to increased data traffic.
For its home appliance business, Samsung, the world’s largest TV and refrigerator vendor, will focus on delivering premium products and enhancing the user experience with customized solutions like its BESPOKE brand appliances.
Kim Hyun-suk, Samsung’s consumer electronics business chief, said the company will also release more B2B products, such as displays for videoconferences, to explore the new market.
He added that Samsung will continue to expand its IoT platform, SmartThings, in collaboration with builders to meet the needs of smart homes.
Meanwhile, Samsung said nearly 900 people attended its 52nd shareholder meeting, which was also broadcast online for the first time.
They approved the reappointment of the company’s three CEOs as board of directors and passed Samsung’s new shareholder return program announced in January.
(Yonhap)
