LG seeks to be major fabless chipmaker

LG Electronics is moving to transform itself into a major fabless chipmaker by hiring more qualified chip designers and giving authority to related divisions. The Korea’s technology giant has strengthened fabless semiconductor manufacturing in a bid to gain a competitive edge in core technologies.

Under “fabless” production, instead of making the chips in-house, manufacturers farm out the manufacturing to outside fabrication facilities, many of them in Asia.

On Friday, LG officials said that the combined number of its chip designers for use in smartphones and Web-connected televisions exceeded 900 because the company’s chief executive Koo Bon-joon has stressed the importance of more independence and dignity in the parts and finished-goods businesses. But it seems unclear how soon LG Electronics will be able to compete with major fabless chipmakers such as Broadcom.

For full article, see Korea Times.

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