Samsung reported a worse-than-expected 32% drop in year-on-year profit in the third quarter.
South Korean multinational tech giant Samsung is reportedly planning to unveil an in-house global research unit to combat semiconductor shortage. The research division is expected to launch next month under the Device Solutions Business Division.
The new unit is formed with the view to analyze the global chips market and further discover new investment avenues, according to a report by SamMobile. “Although Samsung leads several research organizations, these groups are tasked with analyzing different fields. And although Samsung Semiconductor could rely on external market researchers, there’s been a growing distrust in external sources. Samsung reportedly wants to take a closer look at the global semiconductor space through an in-house research division rather than relying on outside sources. Its new division will reportedly begin operations in December,” the report added.
The news comes after Samsung reportedly lost its leading position in the chips market to its rival Intel in the third quarter. Further, the tech giant hopes to improve the pandemic-induced decline in demand, supply chain interruptions, and excess inventories.
It is noteworthy that the company reported a worse-than-expected 32% drop in year-on-year profit in the third quarter amid a continued shortage of semiconductors, while demand for smartphones also stayed low due to reported recession and higher inflation. According to reports, Samsung is planning to reduce its smartphone shipments by 13% in 2023.
A chip, also known as a semiconductor, is an essential part that fuels a wide range of electronic devices, such as cell phones, cars, washing machines, etc. The chip scarcity is hurting most countries in the world and affecting the revenues of many businesses. It is difficult to ramp up the production of semiconductors as setting up chip fabrication plants is expensive to set up, involves a lot of risks, and takes years to build.
