* Firm creates new division for its foundry business
* Samsung seeks to boost chip contract manufacturing
SEOUL May 12 Tech giant Samsung Electronics Co
Ltd said on Friday it has formed a new division
within its semiconductor business for contract chip
manufacturing as the firm seeks to attract more customers.
The new division will be responsible for making mobile
processors and other non-memory chips for clients such as
Qualcomm Inc and Nvidia Corp, competing with
firms such as Taiwan Semiconductor Manufacturing Co.
It will continue to be overseen by Kim Ki-nam, Samsung's
president overseeing all chip businesses.
The move is unlikely to surprise. Analysts had speculated
that the firm would eventually split apart its foundry and
system chip operations to make them more efficient and ease
concerns from customers about potential leaks to parts of
Samsung that compete with them.
Although revenue from the foundry business remains a small
portion of Samsung's overall sales, it has seen sharp growth.
Research firm IHS estimates Samsung's foundry revenue rose 86
percent to $4.7 billion in 2016.
($1 = 1,127.0700 won)
(Reporting by Se Young Lee; Editing by Edwina Gibbs)