Samsung executives answered investor questions about the future capabilities of casting their own chips during the latest earnings call. In principle, they plan a comprehensive development, but this requires a large investment, which is paid by their customers. Samsung's current production capacity was sold to its partners at record prices before the chip shortage began, but as demand for devices increases, Samsung will pay the new costs at a price that reflects the current market.
In the last quarter, Samsung invested 12.5 trillion kroner ($10.9 billion) in the foundry sector. “Casting investments are focused on increasing the capacity of advanced processes such as 5nm EUV to meet customer demand,” company representative Ben Souh told investors.
In the future, Samsung's "casting" will accelerate growth by increasing the capacity of the Pyongyang S5 line and adjusting prices to stimulate future investment cycles. “Pyongyang is one of Samsung’s newest foundries and can produce the second generation of 5nm products and the first generation of 4nm products.
” We will maximize our chip supply and adjust flexibility. “Our combination is to prioritize products with high added value,” Soh said. p>
Higher production costs may affect retail prices Hardware sales will have a negative impact, but on In the long run, if profits are reinvested in the way Samsung says, there will be no shortage of next-generation devices.
At the same time, Samsung has no quick fixes “In the second half of the year, we expect aggregate demand to exceed Supply due to increased demand due to the rapid acceleration of 5G penetration, continued work from home and increased demand for secure stock from customers,” said Samsung Sean Tan.
Samsung raises chip manufacturing price to fund new castings