Samsung Electronics is planning to increase production of modem chips and solutions for 5G telecommunication, according to MK (Maeil Business News Korea) on April 9.
This is because 5G smartphones are becoming more popular than expected, and it is heard that the size of increase in the production is about 10% to 20%.
Its strategy is to catch up with Qualcomm, a global powerhouse, at an early stage in the 5G communication semiconductor market, which is expected to grow rapidly after next year and increase its dominance in the market, the MK reported.
Samsung Electronics Vice Chairman Lee Jae-yong said earlier this year that his company will also win the world's top prize in non-memory semiconductors (CPU, mobile AP, etc.) by 2015.
It is heard that Samsung Electronics will grow 5G telecommunication semiconductors as one of the key products that will realize this goal. It is pushing to increase output, believing the demand for its key components, the 5G modem chip, will increase on the back of the recently released 5G smartphone's huge popularity.
It seems that 5G modem chips will be designed by Samsung Electronics' System LSI Business Department and produced by Foundry Business Department, and will be able to increase production by changing production lines. Qualcomm, Intel, and HiSilicon of China are among the companies that can produce 5G modem chips along with Samsung Electronics.
Market research firm Strategy Analytics predicted that production of 5G modem chips will be 6.2 million units for Qualcomm and 500,000 units for Samsung Electronics this year, but Samsung Electronics' actual output will greatly increase due to this push for increased production.
It is predicted that the size of global 5G communication semiconductor markets will expand from $161 million this year to $3.07 billion in 2021 and $7.96 billion in 2023.