Focus on Next Generation Technologies and Opportunities

Through the information available in the market, we examine Samsung Electronics’ strategy for the next decade and explore the competitive relationship between Samsung and key players.

A new generation of communication technologies such as data centers and LEO satellites are important strategic considerations for companies competing in the world’s top market segments in the new era. Samsung is off to a head start in developing LEO satellites and next-generation communications technology. Have you ever imagined that South Korea could participate in a mission to the Moon thanks to Samsung’s communications technology?

The pressure on mature products during the recession highlights the strategic importance and value of high-end chips for innovative applications such as data centers and Internet of Vehicles (IoV). The High Performance Computing (HPC) segment contributes about 10% of Samsung’s foundry revenue, while TSMC has already reached 43% as of Q2 2022 and is leading the mobile device segment. above 38%. TSMC has a clear advantage. Just like in the days of mainframe computers when everyone considered his IBM as the first choice, the foundry to go now is of course his TSMC, which claims not to compete with customers.

When designing data centers, companies like Meta naturally look to replace Intel’s generic chips with their own customized chips with higher specs. This trend is even more important for networking companies building data centers that need DRAM to support high-speed computing. Demand for his DRAM modules in data centers has shifted from 32GB to 128GB, an important development for the advancement of artificial intelligence (AI) and other key applications.

This trend can be seen in the gradual decline in market share of x86 processors and the role played by Nvidia and AMD in the US government’s efforts to stifle AI development in China. Demand from China used to be large, but the conflict between the United States and China is intensifying. The pandemic has hit not only China’s economy hard, but also the internet giant. Currently, data center construction is concentrated in the eastern part of China, and future data center development will be concentrated in the western region, where electricity and water costs are much lower than in the eastern part. Circumstances are changing and demand is diversifying, but Samsung’s changes are not showing any favorable developments.

South Korea will not rest on its laurels as a second-rate nation, but will try to play an important role in the “space” age. South Korea is one of her seven countries in the world that can launch 1-ton rockets.In terms of satellite technology applications, LEO satellites have the advantage of high-speed transmission, and as an important communication technology of the new generation. Widely recognized.

South Korea is a leader in 4G and 5G technology and will be integral to 6G. Aiming for world-class business opportunities, famous universities such as the Korea Advanced Institute of Science and Technology and Yonsei University are contributing and playing an active partner role in a new form of industry-government-academia collaboration. Based on Korea’s industrial structure, these new technologies will be applied in the future mainly through Samsung and LG.

SpaceX’s Starlink plans to enter South Korea in 2023 to develop a LEO satellite services program. South Korea is also exploring the possibility of urban air mobility (UAM) using LTE technology. South Korea is far ahead of the application landscape, sees great business opportunities, and there is something emerging economies can learn from South Korea’s attitude in the face of challenges.

(Editor’s Note: This is part of a 10-part article by DIGITIMES Asia President Colley Hwang on Samsung’s outlook.)