The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Actor Song Joong-ki still hungry for new movie roles

  • 3

    Korea has world's highest senior poverty rate: data

  • 5

    Chuseok exodus begins ahead of extended 6-day holiday

  • 7

    Seoul Welcome Week to return for first time since pandemic

  • 9

    Korean tennis player Kwon Soon-woo embroiled in controversy after 2nd-round upset

  • 11

    Anti-leaflet law ruled unconstitutional

  • 13

    Rwandan artists bring diversity to Seoul's art scene

  • 15

    INTERVIEWONEUS returns as 'mermaid prince'

  • 17

    Court rejects arrest warrant for opposition leader Lee over corruption charges

  • 19

    BOK warns of worsening household debt situation

  • 2

    S. Korea flexes military might in rare parade with US in central Seoul

  • 4

    Gov't to boost Korean language education for multiethnic students

  • 6

    Guide to Chuseok celebrations across Korea

  • 8

    Hyundai Steel decides to form steel pipe unit

  • 10

    S. Korea-US alliance will end NK regime in event of nuclear weapons use, Yoon says

  • 12

    INTERVIEWWellington mayor's love for Korean culture spurs collaboration

  • 14

    Late Samsung chairman's love of animals helps change Korea's pet culture

  • 16

    For closer business ties between Korea, Vietnam

  • 18

    Over 100 money changers face suspensions, fines, criminal charges

  • 20

    Opposition leader Lee attends arrest warrant hearing at Seoul court

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
Thu, September 28, 2023 | 22:48
Tech
Samsung's Lee visits China amid easing virus fears
Posted : 2020-05-18 17:07
Updated : 2020-05-19 09:28
Baek Byung-yeul
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Samsung Electronics Vice Chairman Lee Jae-yong, second from left, inspects the company's memory chip manufacturing plant in Xian, China, Monday. / Courtesy of Samsung Electronics
Samsung Electronics Vice Chairman Lee Jae-yong, second from left, inspects the company's memory chip manufacturing plant in Xian, China, Monday. / Courtesy of Samsung Electronics

Group leader's visit to the firm's Xian plant comes after US hits Huawei hard

By Baek Byung-yeul


Samsung Electronics Vice Chairman Lee Jae-yong visited the company's key semiconductor plant in Xian, China, Monday, resuming his on-site inspection activities after his pledge to help the consumer electronics giant continue its upward trend.

Samsung said the vice chairman used his Chinese trip to encourage employees who have been trying hard to overcome difficulties from the COVID-19 pandemic. Lee is the first "global businessman" to visit China since the virus erupted, Samsung said.

This was Lee's first overseas business trip since January when he inspected TV and smartphone manufacturing lines in Brazil. His visit was possible as Korea and China began operating a fast-tracked border entry system, exempting businesspeople from a 14-day mandatory self-quarantine period starting this month.

"There will be no future if we are haunted by the past or rest on what we have done so far. To create new growth engines, we need to be preemptive and be prepared for forthcoming changes," Lee was quoted in the statement issued by Samsung. "We have no time. We cannot afford to lose this moment."

The Xian plant is Samsung's only memory chip plant located outside of Korea. In an effort to sell more chips to Chinese electronics firms, Samsung announced a factory expansion plan last year, in which it will invest $8 billion in the newly built plant.

The vice chairman is accelerating his search for the corporation's new growth engines. He apologized recently over both alleged and confirmed past wrongdoings related to management succession plotted by some Samsung executives. He also said Samsung would invest in the businesses that it did well and actively seek out new growth opportunities in promising sectors.

Lee's visit to China came at a time when the United States announced it will limit the supply of memory chips made with its technologies to Chinese telecommunication equipment maker Huawei Technologies, May 15.

US cracks down on global chip exports to Huawei; China retaliation eyed
US cracks down on global chip exports to Huawei; China retaliation eyed
2020-05-18 14:31  |  World

Under that new sanction, companies using chip-making technology from the U.S. will be required to obtain a U.S. license before supplying chips to Huawei, which means Korean chipmakers such as Samsung and SK hynix will have to cut off their chip supplies to Huawei unless they get waivers from the U.S. commerce department.

Given Huawei is one of the largest buyers of chips made by Samsung and SK, it remains to be seen how Samsung could seek a breakthrough in the semiconductor industry which faces a series of negative factors such as the U.S.-China trade row and global economy slowdown sparked by COVID-19.

Will Samsung expand Austin chip factory?

Whether Samsung Electronics will expand its chip-manufacturing factory in Austin, Texas, is one important point, according to company and industry officials. The Austin plant is Samsung's only chip-making plant in the United States.

Taiwan's TSMC is at the forefront of the move as the Taiwanese chip foundry company announced its plans to build a chip-making plant in Arizona. The world's largest contract-based microchip manufacturer said the decision to build the plant is to enhance its partnership with the U.S. government, adding the new factory will create over 1,600 high-tech professional jobs and thousands of indirect jobs.

"Construction is planned to start in 2021 with production targeted to begin in 2024. TSMC's total spending on this project, including capital expenditure, will be approximately $12 billion from 2021 to 2029," TSMC said in a statement, May 15. "This project is of critical, strategic importance to a vibrant and competitive U.S. semiconductor ecosystem that enables leading U.S. companies to fabricate their cutting-edge semiconductor products within the United States and benefit from the proximity of a world-class semiconductor foundry and ecosystem."

Industry analysts said Samsung will be able to live up to the Trump administration's expectation if it builds additional fabrication facilities in its existing Austin plant.

They added the expansion of the Austin plant is not a bad choice at all as Samsung is required to increase its production capacity in the contract-based foundry business to better compete with industry-leader TSMC, which is widening its market share gap with Samsung, which is in second place.

According to data by market tracker TrendForce, TSMC had a market share of 52.7 percent in the foundry business in the fourth quarter of 2019 while Samsung took 17.8 percent. Given TSMC had a share of around 48 percent a year ago when Samsung remained at 18 percent, the gap between the two has widened steadily.

"The possibility of placing high tariffs is increasing due to the U.S.-China trade dispute and issues about a supply chain bottleneck in the wake of the COVID-19 outbreak, and it is expected that fabless companies will increasingly give their chip production contracts to foundry companies that have better accessibility and are low risk," said Kim Kyung-min, an analyst at Hana Financial Investment.

"From the perspective of Samsung, expanding its Austin factory is a necessity in order to strengthen the competitiveness of its foundry business and reduce TSMC's lead."



Emailbaekby@koreatimes.co.kr Article ListMore articles by this reporter
 
miguel
wooribank
LG
Top 10 Stories
1Chuseok exodus begins ahead of extended 6-day holiday Chuseok exodus begins ahead of extended 6-day holiday
2Guide to Chuseok celebrations across KoreaGuide to Chuseok celebrations across Korea
3Korea sees record-low births in July Korea sees record-low births in July
4Political battle intensifies after court rejects Lee's arrest warrant Political battle intensifies after court rejects Lee's arrest warrant
5Hyundai E&C to build upmarket apartment complex in Seoul's Gwanak District Hyundai E&C to build upmarket apartment complex in Seoul's Gwanak District
6DMZ Open Int'l Music Festival to be held in Goyang in November DMZ Open Int'l Music Festival to be held in Goyang in November
7Two Koreas trade barbs over nuclear war Two Koreas trade barbs over nuclear war
8Lotte focuses on health care, mobility to spur growth Lotte focuses on health care, mobility to spur growth
9Korea on track to prove esports prowess at Asian Games Korea on track to prove esports prowess at Asian Games
10Defense ministry launches project to find families of unidentified fallen Korean War soldiers Defense ministry launches project to find families of unidentified fallen Korean War soldiers
Top 5 Entertainment News
1[INTERVIEW] With '30 Days,' Kang Ha-neul finds new level of comfort in acting INTERVIEWWith '30 Days,' Kang Ha-neul finds new level of comfort in acting
2Rwandan artists bring diversity to Seoul's art scene Rwandan artists bring diversity to Seoul's art scene
3[INTERVIEW] ONEUS returns as 'mermaid prince' INTERVIEWONEUS returns as 'mermaid prince'
4Kep1er unveils 'Magic Hour' with fresh perspective on love Kep1er unveils 'Magic Hour' with fresh perspective on love
5K-pop group Kingdom recalls album cover resembling Quran K-pop group Kingdom recalls album cover resembling Quran
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group