Samsung and LX Semicon join hands on next-gen chip production

LX Semicon has chosen Samsung as its foundry partner for the development and mass production of the next-generation chips. LX Semicon, one of the representative fabless companies in Korea, primarily manufactures DDIs that control the pixels of smartphone and TV displays.

Its main customers include LG Display, BOE, and CSOT. Recently, it has been expanding its business to include power semiconductors for displays and microcontroller units (MCUs) for vehicles, while increasing the proportion of products for organic light-emitting diode (OLED) panels, which have a high unit price.

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LX Semicon only develops the chips and delegates production to foundry companies, making it one of the biggest players in the foundry industry spending more than 1 trillion won annually. Until now, it outsourced the production of premium products to Taiwan’s TSMC, while mid to low-end products were handled by SK Hynix System IC.

It had no dealings with Samsung Foundry Division, thought to be due to its affiliation with LG Group until its separation in May 2021. LX Semicon began collaborating with Samsung at the beginning of this year. Samsung Display, one of Samsung’s affiliates, was the first to initiate the partnership.

Earlier this year, Samsung Display and LX Semicon decided to jointly research and develop DDIs needed for next-generation OLED panels for smartphones. LX Semicon and the Samsung Electronics Foundry Division are expected to continue their collaboration on various next-gen chip developments in addition to DDIs.

(Via)