How Samsung plans to combat global semiconductor decline

Earlier this month, a report by market research firm Omdia claimed that the global semiconductor market in the third quarter (Q3 2022) stood at $147 billion – down by 7% from $158 billion in Q2 2022. Samsung reportedly lost its top position to Intel. Now, a new report has claimed that the South Korean giant will establish a global research organisation to combat the contraction in the market and address semiconductor decline.
As per a report by Business Korea, the new semiconductor division will be set up under the DS Business Division in December to combat the contraction in the market. It will reportedly focus on analysing the semiconductor market and other related industries, and discover markets.
The report says that Samsung’s move to establish a separate in-house research division comes as the world is experiencing a shortage of semiconductors due to supply chain disruptions triggered by Covid-19 crisis. “A growing distrust of external market research institutions also played a role,” the report adds.

Sluggish performance of the semiconductor market in Q3 2022
Omdia reported that Covid-19 logged an increase in demand for IT products, shrinking the global semiconductor market. This was reportedly due to the sluggish performance of the memory market.
“The memory market saw profits decrease by 27% as compared to the previous quarter due to customers’ inventory adjustments and a decrease in demand for chips from data centres, PCs, and mobile devices,” said Cliff Leimbach, the chief researcher at Omdia.
It hit companies such as Samsung Electronics, SK Hynix and Micron Technology. Samsung’s sales dipped in Q3 by 28.1% as compared to Q2. It lagged behind Intel, which posted $14.9 billion in sales. US-based chipmaker Qualcomm grabbed the third spot with a 5.6% increase in Q3 as compared to the second quarter. SK Hynix dropped from third to fourth place and Micron replaced Broadcom in the sixth position.