A South Korean fabless semiconductor manufacturing business had beat out an American competitor and has become the sole supplier of MCU (Micro-Controller Unit) Chips for touch keys of Samsung Electronics’ Galaxy S7 and S7 Edge.
According to related industries on the 16th, ABOV Semiconductor had supplied MCU Chips for operating 8-bit touch keys of Galaxy S7 Series. Touch key indicate the keys that are located on the left and the right of the central home button of Galaxy Smartphones. Galaxy Smartphones are brightened up when touch keys are touched by a finger, and touch keys are also used to open up an app that was recently used and to go back to a previous screen. ‘C’ company from the U.S. had been supplying MCU Chips to Samsung Electronics until Galaxy S6 Series.
Although ABOV Semiconductor had supplied MCU Chips to Samsung Electronics for its inexpensive Smartphones, this is the first time it is supplying MCU Chips for Galaxy S Series.
ABOV Semiconductor was the sole supplier of MCU Chips for touch keys of Samsung Electronics’ new Galaxy A Series that are being sequentially released by Samsung Electronics’ Wireless Business Department since end of last year. Corresponding product is in a form of one-chip that combines touch-sensor and MCU into one. It is heard that it has huge advantages in reducing production cost and space for design.
Because tens of millions of Galaxy S and Galaxy A Series are shipped annually, experts believe that although 8-bit MCU Chip has low unit cost, it will greatly contribute in improving company’s performance. Fact that ABOV Semiconductor is the sole supplier of MCU Chips for world’s biggest Smartphone manufacturer’s new-application products will also greatly help ABOV Semiconductor in finding new customers in the future.
“Because ABOV Semiconductor has become the sole supplier of MCU Chips after beating out its competitors from the U.S., there will be significant amount of import substitution effect for Samsung Electronics.” said a representative for this industry.
ABOV Semiconductor is one of few South Korean fabless manufacturing businesses that specialize in MCU Chips. It was established in January of 2006 by being separated from Magna Chip Semiconductor’s (previously Hynix Semiconductor’s system Semiconductor Business Department and formerly LG Semiconductor) Application Processor Sector and was listed on COSDAQ in June of 2009.It supplies MCU Chips for 400 types of electronic products such as household appliances, TVs, mobile MCUs and others and is currently expanding its business into IoT area by strengthening its business capability in 32-bit MCU Chips that have high values while also developing BLE (Bluetooth Energy) SoC (System on Chip) and others. Its sales and operating profit from last year were $81.2 million (96.9 billion KRW) and $5.44 million (6.5 billion KRW) respectively.
Staff Reporter Han, Juyeop | powerusr@etnews.com