Samsung's semicon head sticks to tech leadership against market dynamics

Kim Ki-nam, head of Samsung Electronics’ device solutions division.

Samsung Electronics will focus on widening the gap with rivals by developing the 10 nano process for its 3rd-generation DRAM chips and 6th-generation V-NAND, while gaining leadership in a high-growth new business sector with differentiated products such as high bandwidth memory this year, according to the company’s semiconductor business head on Wednesday.

During Kim Ki-nam, head of Samsung Electronics’ device solutions division, made the remarks as part of his response to growing uncertainty in the global semiconductor market during the company’s 50th annual shareholders’ meeting held in its Seoul headquarters Wednesday morning.

"This year will be a challenging for Samsung Electronics due to slow sales of smartphones and investment contractions by big data center clients, but there will be a window of opportunity at the same time with steady demand from new growth areas such as 5G, artificial intelligence and car electronics,” he said.

Regarding the company’s semiconductor capex investment, Kim said the management will take a flexible approach to market dynamics, while prepping to ensure no disruption in commercial production from new lines in Pyeongtaek in Korea and Xian in China.

Touching on Samsung’s foundry business, he said will produce chips with circuitry widths of 7 nano meters using the latest manufacturing technology called EUV (extreme ultraviolet) lithography ahead of rivals.

Meanwhile, vice chairman Jay Y. Lee who has expanded his business activities after avoiding a jail sentence during appellate proceedings early last year was not present in the shareholders’ meeting.

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