Samsung System Semiconductor's 'Storming Growth'... Exceeding 1Q Target for LSI Business

Increased Home Appliance and Mobile Consumption After COVID-19
Continued Supply Shortages of DDI and Mobile AP Impact
Unusual Mention of Sales Achievement in Non-Memory Sector

[Asia Economy Reporter Suyeon Woo] It has been confirmed that Samsung Electronics' System LSI business, a key pillar of its system semiconductor operations, exceeded its sales target for the first quarter of this year. This is attributed to the pent-up demand effect from COVID-19, which increased demand for system semiconductors used in mobile devices and TVs, along with a continued supply shortage.

According to industry sources on the 26th, Samsung Electronics stated in its first-quarter business report that "the System LSI business is showing strong demand due to robust sales of new products from major customers amid the ongoing COVID-19 pandemic and aggressive competition for securing components," adding, "especially SoC (System on Chip) and LSI (Large Scale Integration) products achieved growth exceeding targets."

The System LSI division is responsible for the design and development of system semiconductors excluding foundry services within the non-memory sector, including Display Driver ICs (DDI), Mobile Application Processors (AP), and Power Management ICs (PMIC).

Although Samsung Electronics did not disclose specific sales figures for the System LSI division, mentioning the achievement of sales targets in the non-memory sector is highly unusual. This is interpreted as a display of confidence that the System LSI division has achieved remarkable growth since the beginning of this year.

Previously, Samsung Electronics announced its goal of double-digit sales growth in the System LSI sector for this year. Considering the supply and demand situation in the first quarter and recent price increases for system semiconductors such as DDI, Mobile AP, and Image Sensors (CMOS), there is strong support for the view that this annual target is fully achievable.

This content was produced with the assistance of AI translation services.