Samsung will focus on non-memory chip and foundry business as the company’s next growth engine

Before announcing the Fourth quarter result of 2018, Samsung vice chairman, Lee Jae-Yong said that the company will shift its focus on expanding the non-memory chip and foundry business as a part of its new growth source.

According to YonhapNews, Samsung chief made this remark during an official meeting on January 30 and promised to overcome from the current crisis through leading innovations.

As the company’s fourth-quarter results show an operating profit of 10.8 trillion won (US$9.7 billion), down 29 percent from the previous year. Which is led down by the weakening demand of memory business.

Q4 2018 Results: Operating profit down by 29% due to weaker demands in memory chip business

Throughout last year, Samsung posted good records on the back of blooming memory chip business even without the help of Mobile division, which stayed sour the whole year.

Samsung has been investing heavily in memory semiconductor including dynamic random-access memory (DRAM) and NAND flash chips. As Lee’s words seem to reflect that the tech giant is now preparing to grow its non-memory chip business and compete against other big rivals.

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