Samsung a world leader in the sphere of consumer electronics and semiconductors has decided to enter the foundry market. The company already has experience in the hard drive and flash memory market and is already an established player in the latter so it does have the chops to maintain itself in this line of business. With a dedicated foundry, Samsung can easily compete against the established players in the market such as TSMC and Global Foundries which are currently the manufacturers of choice for fabless chip designers such as Qualcomm, Apple, Nvidia and AMD.

The company on Friday said that it had created a new division within its semiconductor business for manufacturing mobile processors and other non-memory chips for fabless chip designers like Qualcomm and Nvidia. The division will operate under Kim Ki-nam, the company president overseeing all chip businesses.

 

This move also allows the company to more efficiently gauge its own requirements and fulfill them with a dedicated unit to produce its homegrown Exynos chipsets. Analysts and industry observers seeing the company’s rise with chip making have been thinking along these lines for some time now, so the news is not exactly out of the blue. IHS analysts have also estimated an 86% year-over-year growth to $4.7 Billion for the division in 2016.

Read More: Samsung and Qualcomm collaborating on the Snapdragon 845

Hopefully, the improved competition and manufacturing capacity further drives down the price and availability of various mobile chips in the market.