Samsung-LX ‘Semiconductor Alliance’ Cooperates to Develop Next Generation Chips
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Update time : 2023-07-04 14:37:36
LX Semicon, a fabless company once owned by LX Group, a conglomerate of LG Group, is considering entrusting production of next-generation display driver integrated circuits (DDIs) to Samsung Electronics OEM. Samsung's cooperation with LX is expected to have a positive impact on the Korean semiconductor ecosystem and diversify the supply chain.
According to industry sources on July 2, LX Semicon has selected Samsung Electronics as its foundry partner to jointly develop and mass-produce next-generation chips. As one of the representative Fabless companies in South Korea, LX Semicon mainly produces DDIs that control pixels in smartphones and TV displays. Its main customers include LG Display and Chinese companies such as BOE and CSOT. The company has recently expanded its business to include power semiconductors for display devices and microcontroller units (MCUs) for automobiles, while increasing the proportion of high-unit organic light emitting diode (OLED) panels. Similar to other Fabless companies, LX Semicon is only responsible for developing chips, and production is entrusted to foundries, spending more than 1 trillion won per year (currently about 5.50 billion yuan). To date, LX Semicon has mainly outsourced the production of high-end products to TSMC, while mid-to-low-end products are handled by SK Hynix System IC; and due to its association with LG Group, LX Semicon has not previously cooperated with Samsung Electronics' foundry department. Earlier this year, LX Semicon began talks with Samsung. Earlier this year, Samsung Display and LX Semicon decided to jointly research and develop the DDIs required for next-generation OLED panels for smartphones. In addition to DDIs, LX Semicon and Samsung Electronics' foundry division will continue to collaborate on various next-generation chip developments. This is seen as a major move to strengthen the homegrown semiconductor ecosystem. It creates a virtuous circle where next-generation display chips developed by Korean fabless companies are mass-produced through Korean foundries and supplied to Korean display companies.
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