Samsung co-CEO Kye-Hyun Kyung expects $100M+ revenue in 2024 from an advanced chip packaging unit that the company set up as a separate business in 2023
Context & Ripple Effects
Samsung had already kept chip investment comparatively steady during a weaker mobile-profit period, and later paired that posture with a packaging research investment in Yokohama. The new unit-level revenue target makes advanced packaging a measurable commercial line rather than only a supporting manufacturing function.
Related coverage also shows Samsung pursuing tighter coordination across memory, foundry and packaging, cutting AI-chip production time by about 20% through that integration. That makes the packaging business a useful indicator of whether the company can convert its manufacturing stack into customer-facing revenue.
First-order effects
- Samsung’s separately run advanced-packaging unit is now accountable for generating more than $100 million in 2024 revenue, giving the business a defined commercial benchmark.
- The target elevates packaging within Samsung’s chip operations, alongside its existing memory and foundry activities.
Second-order effects
- A standalone revenue goal creates pressure to turn packaging capabilities into repeatable customer engagements, not merely internal support for Samsung-made chips.
- If the unit meets its target, Samsung’s subsequent integration of memory, foundry and packaging gains a clearer commercial rationale: faster delivery can become part of an end-to-end chip offering.
Third-order effects
- The development points toward advanced packaging becoming a separately managed competitive layer in semiconductor production, as performance and delivery depend on coordinating multiple stages of the chip supply chain.
- Whether this becomes a durable revenue engine depends on sustained customer adoption; Samsung’s planned research build-out suggests the capability race will extend beyond factory capacity alone.
The trend: Advanced packaging is shifting from a back-end manufacturing step into a strategic, revenue-bearing part of integrated AI-chip supply chains.