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Samsung will continue targeting Hon Hai, TSMC: report

Samsung will continue targeting Hon Hai, TSMC: report

Taipei, March 20 (CNA) South Korea's Samsung Electronics Co., will continue to target its Taiwanese rivals Hon Hai Group and Taiwan Semiconductor Manufacturing Co. (TSMC) with a plan to "kill Taiwan," the local Business Today magazine reported Wednesday. After the 2008 financial crisis, Samsung's top business operating policymaking meeting decided to adopt the "kill Taiwan" strategy, according to the report. After jolting Taiwan's high technology industry, Samsung is set to take a fourth step in its plan, aiming at Taiwanese tech giants Hon Hai Group -- the world's largest electronics manufacturing service (EMS) provider -- and TSMC, the world's top contract chipmaker. Hon Hai, better known Foxconn Technology Group in China, and TSMC both declined to respond to the report. However, an industry expert familiar with Hon Hai said the company is not in direct competition with Samsung and in fact, the two companies could not rule out more opportunities for cooperation this year. On March 6, Japan's Sharp Corp. agreed to sell 10.4 billion Japanese yen (US$109.04 million)-worth of new shares, or a 3 percent stake in the company, to Samsung. Japanese media reports said that last year, Samsung had originally hoped to invest in Sharp's 10th-generation plant in Sakai, Japan, a joint venture between Sharp and Hon Hai. Related reports have sparked concern over a triangular relationship among Hon Hai, Samsung and Sharp. Regarding Samsung's acquisition of a stake in Sharp, a Hon Hai source said the Taiwanese company had received prior notice of the Sharp-Samsung capital tie-up deal. "We appreciate Sharp's respect for our relationship," the source said, adding that it would be inappropriate to comment on the deal as Sharp is an independent listed company. Moreover, the source said, as the Hon Hai-Sharp cooperation on the Sakai venture has made some remarkable achievements, the two companies will continue negotiations on further cooperation. TSMC also declined to comment. Samsung has become the world's leading producer of dynamic random access memory chips (DRAM) and Flash memory chips (NAND Flash) and has been aggressively expanding its contract chip manufacturing business in recent years, making it a major competitor for TSMC. (By Chung Jung-feng and Y.L. Kao)


Updated : 2021-01-26 23:25 GMT+08:00