Samsung Foundry Makes Bold Move: Partners with DSP to Secure Overseas Market Share

The semiconductor production ecosystem comprises several stages, including design (fabless), design solution (DSP), production (foundry), and assembly and testing.
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In recent years, Samsung Electronics’ foundry sales activities have surged. This indicates a strategic shift towards more aggressive customer acquisition and deeper collaboration with Design Solution Partner (DSP) companies. The proactive approach aims to solidify Samsung’s position in the semiconductor market and capitalize on the growing demand for cutting-edge technologies.

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The Semiconductor Production Ecosystem: Understanding the Role of DSP Companies

The semiconductor production ecosystem comprises several stages, including design (fabless), design solution (DSP), production (foundry), and assembly and testing.

DSP companies play a pivotal role by bridging the gap between fabless design and foundry production.

They tailor semiconductor designs to fit specific foundry processes, thereby facilitating seamless collaboration between fabless customers and foundries.

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Samsung Electronics Foundry’s Strategic Emphasis on DSP Collaboration

Samsung Electronics Foundry’s emphasis on strengthening partnerships with DSP companies has yielded significant results.

With over 100 customers already on board, Samsung aims to double this number by 2028, leveraging the synergies between foundry and DSP to attract more fabless customers.

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Domestic DSP Companies’ Overseas Expansion: Key Drivers and Success Stories

One key aspect of this strategy is the expansion of domestic DSP companies into overseas markets.

Gaon Chips, AD Technology, Semifive, Koasia, and Core Asia are among the notable players that have established overseas subsidiaries or business sites to secure global customers.

These strategic moves have not only enabled them to tap into new markets but also led to a series of successful orders for high-tech processes.

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Success Stories: Gaon Chips, AD Technology, Semifive, Koasia, and Core Asia

Gaon Chips secured a breakthrough order for a 2-nano process-based AI accelerator chip from a Japanese fabless company. This marks Samsung Electronics’ entry into the 2-nano chip market. AD Technology and Semifive secured orders for server semiconductors and formed strategic partnerships with industry giants like Tommen Devices and Terrapixel Technologies. Koasia’s early overseas market entry and supply chain expertise have established it as a formidable global player. Core Asia’s success in winning a 4-nano full-turnkey project from a U.S. customer highlights the effectiveness of Samsung DSPs’ global expansion efforts.

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Factors Driving Success: Samsung’s Sales Strategy and Industry Dynamics

The success of Samsung Electronics’ foundry and DSP companies’ collaboration can be attributed to several factors.

Firstly, Samsung’s revamped sales strategy, coupled with its Shell First initiative to preemptively build clean rooms, has bolstered customer confidence and spurred demand for foundry services.

Secondly, Samsung’s active support for DSP companies, particularly in securing overseas customers, has incentivized their global expansion initiatives.

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Conclusion: Shaping the Future of Semiconductor Design and Production

In conclusion, Samsung Electronics’ collaboration between its foundry and DSP companies drives global expansion in semiconductors. Leveraging synergies and seizing opportunities, Samsung and its DSP partners lead in shaping semiconductor design and production.

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