Just What The Semi Industry Didn’t Need
Electronic News reports consumer electronics giant Samsung is about to become a foundry giant, as well.
The Korean-based conglomerate, best known for its brand-name televisions and cell phones — and more recently for memory — is about to buy its way into the leading-edge foundry business. Over the next six years, the company will spend $33 billion in capital equipment to build six new 300mm fabs. The company already has one in the works, bringing the total to seven.
We hate to sound like a broken record, but there is already too much semiconductor capacity, too much additional capacity is planned, and it is going to be a real downer for semi stocks. What Samsung likely considers to be a “strategic” move, we consider piling on.
Disclosure: William Trent has a long position in SMH.
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