Samsung cuts prices on contract manufacturing of semiconductor products

Referring to industry representatives, the source claims that Samsung has reduced the prices for production of semiconductor products under the contract. In particular, this applies to orders for driver ICS of LCD panels, power controllers and image sensors of the CMOS type. Besides offering more attractive prices, Samsung is trying to intercept the orders of the second level customers, now accrue to competitors. We are talking about small and medium-sized companies, especially Chinese, designing chips, and not having own production.

Allegedly, Samsung’s desire to attract new customers motivated by the desire to compensate for the loss of orders for Apple’s A10 processors. The source adds that, while Apple did not order the release of the A10 at Samsung, the South Korean manufacturer has orders for production of 14-nanometer and 10-nanometer products received from Qualcomm, AMD and Nvidia.

According to the source, Samsung manufactures the contract products in three factories: S1 is working with 200-mm wafers, S2 and S3, with a 300 mm. The performance of S1 is estimated at 190 000 plates per month, S2 and S3 — 135 000-140 000 wafers per month in total. Note on the manufacturer’s website says that all companies are working with 300-mm plates. In this S1 Line and S2 Line is shown as not working, S3-Line — like construction.

Sources: DigiTimes, Samsung

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