Samsung Electronics says may enter chip foundry business

SEOUL (Reuters) - Samsung Electronics Co Ltd, the world's largest memory chip maker, is considering entering the chip foundry business, a company spokeswoman said on Thursday.

Such a move, would put Samsung in competition with firms such as Taiwan Semiconductor Manufacturing Co, the world's largest contract manufacturer of microchips, which take orders from chip design firms that outsource production.

"We are considering the foundry business to boost our competitiveness and will likely aim to be a high-end foundry," the Samsung spokeswoman said by telephone, declining to elaborate.

Other top foundries include Taiwan's United Micro Electronics and Shanghai-based Semiconductor Manufacturing International Corp.

Revenue from Samsung's system LSI -- customised, high-end microchips -- business was only 14 percent of that of its memory chip business in the second quarter. But the company opened its new system LSI line, which uses advanced 300mm silicon wafers, in July.

An official at Samsung's Kiheung chip plant also declined to give details.

"No decision has been made on the foundry business plan," said the official, when asked if the new line could be used for the firm's foundry business.