Micron challenges Samsung's dominance in memory market

South Korean company loses to US rival in profit margin for chipmaking business

20210520 Samsug

Falling profitability in Samsung's chipmaking business could affect the company's investment capacity in displays and other sectors.

KOTARO HOSOKAWA, Nikkei staff writer

SEOUL -- Samsung Electronics' semiconductor business, the engine that has powered the company's high profitability, is coming under growing pressure. In the latest fiscal quarter, the company was overtaken by rival Micron Technology in terms of operating profit margin for the sector, with the former posting 18% and the latter reaching 20%. A drop in the profitability of the company's cash cow could also affect its investment capacity in other sectors, such as semiconductor contract manufacturing and displays.

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