Samsung plans to increase production of image sensors to compete with other companies

Samsung Electronics, a world leader in advanced semiconductor technology. With the new ISOCELL technology, Samsung plans to expand the ultra-high-resolution offerings to mainstream smartphones.

Recently, Samsung Electronics plans to increase its CMOS image sensor (CIS) production by 20% this year, which is expected to reduce water shortages from partners. Affiliates are increasing their investments and preparing for volume expansion.

According to the report, last year, Samsung Electronics’ CIS monthly chips input amount was around 100,000. Samsung Electronics plans to expand this to 120,000 to 130,000 units per month. In the industry, the plan to convert and invest in one of the Hwaseong line 11 and line 13 DRAM fabs is a strong view.

Samsung Electronics CIS partners such as Tessna, Nepass Arc, LG Semicon, and Plus Chip began actively investing in facilities from last year. Test company Tesna started the operation of a new Anseong plant in late October to digest Samsung Electronics’ CIS volume.

Tesna’s sales in the fourth quarter of last year are expected to increase by 32% from the third quarter (30 billion won) to 39.8 billion won as new CIS test volumes are applied. Tesna explained, “This equipment investment will increase sales this year by about 70~80 billion won”

LG Semicon and Nepes Ark were in charge of Samsung Electronics CIS testing. Nepes Arc invested 14 billion won in equipment and facility construction from December last year to June this year. Nepes Arc said, “At the new facility, CIS tests will be produced from the end of the first quarter.”

Until now, the power semiconductor (PMIC) test volume accounted for about 80%, but last year’s sales are expected to increase by 28.8% from the previous year (54.7 billion won) to 70.5 billion won due to the effect of new CIS orders.

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LG Electronics was selected as the second CIS vendor of Samsung Electronics for the first time last year. In September of last year, it invested 58.1 billion won in CIS and system-on-chip (SoC) test facilities in the Anseong plant with the goal of completion in May this year.

From March this year, the initial volume of the CIS test is scheduled to be tested. Silicon Works and Magna Chip Semiconductor have been testing display driving chips (DDI) with major customers. It is evaluated that it is possible to escape the DDI-focused sales structure by securing a large customer company called Samsung Electronics.

According to market research firm Omdia, the market share of Samsung Electronics, second place in the image sensor market, rose 5% from 16.7% in 2019 to 21.7% in the second quarter of 2020. Sony’s market share, the number one in the same period, fell 13.7% from 56.2% in the third quarter of 2019 to 42.5% in the second quarter of 2020.

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