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Samsung Electronics Publicly Apologizes Amid Setbacks in Memory and Foundry Business

AleksandarK

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Samsung Electronics is grappling with significant challenges in its semiconductor division, particularly in its memory and foundry businesses. The company's top management, led by DS Division Vice Chairman Jeon Young-hyun, recently issued a public apology for the division's underwhelming performance. The tech giant's struggles are best seen in its advanced 3 nm Gate-All-Around (GAA) FET node, which reportedly yields only 10-20% of working silicon. This low yield rate has made potential customers hesitant to partner with Samsung, dealing a blow to its foundry business. Samsung Securities projects a 500 billion won (approximately $385 million) loss this year for Samsung Foundry and the LSI division combined. In the global foundry market, Samsung's position has weakened considerably. The company currently holds just 11.5% of the market share in Q2, while industry leader TSMC dominates with a commanding 62.3%. This disparity has led to speculation about the possible spinoff of Samsung Foundry, as the company reevaluates its strategy in the advanced semiconductor manufacturing sector.

Memory unit, one of Samsung's biggest assets, is slowly being one-upped by SK Hynix, which could overtake Samsung as the number one memory maker thanks to strong HBM demand. The management's apology acknowledges the concerns raised about the company's technological competitiveness and future prospects. Vice Chairman Jeon emphasized the need to restore fundamental competitiveness in technology and quality, which he described as the company's "lifeblood." Despite these challenges, Samsung's leadership remains optimistic about turning the crisis into an opportunity. They have pledged to focus on long-term solutions, invest in pioneering technologies, and foster a culture of innovation and open communication within the organization. As one of only three companies left in the advanced semiconductor manufacturing field, alongside TSMC and Intel, Samsung's ability to overcome these hurdles will be crucial not only for the company but for the entire industry.



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FreedomEclipse

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Prices of NAND and mobile chipsets are now going to go up by 30-40%
 
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What is the specific reason Samsung and Intel are struggling so hard to make anything below 10 nm?
 
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What is the specific reason Samsung and Intel are struggling so hard to make anything below 10 nm?

Both companies will Never release full technical details about all these Low Yield problems. We could only guess or speculate. Low Yield means that chips do Not pass stress tests.
 
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Scamsung needs a full leadership reset it appears. I'm sure they have plenty of talent, but execution is abysmal. We need Intel and Samsung to be strong competitors to TSMC as nothing good comes from a monopoly. I'll bet US doesn't care about that though when it comes to chips as they are in a battle with China on tech supremacy.
 
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