Samsung Semiconductor’s China unit has denied claims of halting partnerships with its Chinese clients.

In a WeChat post on Apr. 9, the company said its foundry business continues to operate “as normal” with partners in China.

The clarification follows speculation about Samsung’s stance on US restrictions on chip technology exports to China.

Concerns grew after reports that TSMC had stopped services to certain restricted Chinese clients last year, raising questions on whether Samsung would follow suit.

Samsung did not provide details about its clients or partnerships in China. It also has not commented on its compliance with potential US requests.

The company is one of the few global foundries capable of producing advanced chips at 7-nanometer technology and beyond, competing with TSMC in the semiconductor sector.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Samsung’s semiconductor journey shows remarkable adaptability amid industry shifts

Samsung’s statement defending its Chinese partnerships reflects a company that has continuously adapted to industry transformations since entering electronics in 1969.

The company pivoted from its origins as a food exporter to become a semiconductor powerhouse through strategic investments, beginning with its acquisition of Hankook Semiconductor in 1974, which laid the foundation for its memory chip dominance by the 1990s 1.

Samsung’s vertical integration strategy allowed it to control its supply chain while expanding into the foundry business in the mid-2000s, manufacturing chips for external clients rather than solely for internal use 1.

Despite now holding only 9-13% of the global foundry market compared to TSMC’s dominant 65% share, Samsung has demonstrated resilience through major technological transitions, from developing the world’s first 1GHz Alpha CPU in 1999 to its current focus on advancing 2nm process technology 2 3.

This historical context suggests Samsung’s current stance on maintaining Chinese partnerships continues its tradition of navigating complex industry shifts while balancing business interests against geopolitical pressures.

2️⃣ The foundry market’s competitive landscape reveals significant challenges for Samsung

Samsung’s commitment to Chinese clients comes amid a widening competitive gap with TSMC that extends beyond simple market share numbers.

Recent Samsung developments