According to IC Insights, a market research firm, Samsung, the second-largest semiconductor supplier, generated $20 billion in IC product sales in 2006, second only to the company leader Intelz, although Samsung has been diversifying its products for the past five years. However, according to the database, Samsung's dependence on memory products is increasing, and its failure in the logic product market can not be ignored.
Compared with 2000, Samsung's memory sales in the first quarter of 2007 accounted for a significant increase in the total sales of IC products. To a certain extent, the increase in the proportion of Samsung's memory sales is the result of the company's successful market share in the memory market, but its failure in the logic product market can not be ignored.
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Between 2000 and 2006, the global average growth of the memory market was only 3%. In contrast, during this period, Samsung's memory sales grew at a compound annual growth rate of 12%, four times the global level. However, Samsung's simultaneous variable-programming soft-logic IC product sales have a compound annual growth rate of only 5%, half of the global level.
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Analysts believe that Samsung must reduce its dependence on the memory market, and recently Samsung has publicized its entry into the mainstream IC foundry, it is not difficult to see the company's desire for product diversification. However, the amount of money spent by Samsung in its System LSI division has been declining, from $963 million in 2005 to 7.73 billion in 2006. In fact, Samsung's 2007 budget for the System LSI business was only $568 million, a decrease of about 40% from 2005. Samsung Semiconductor has increased its internal sales to Samsung Electronics while diversifying its products. The internal sales of IC products have tripled in the past four years, while the internally transferred sales also accounted for the total sales of Samsung ICs. 13%, up 9% from 2002, such a large increase is due to the success of Samsung Electronics in the mobile phone market.
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