Samsung Evaluates Chip Design Division, Could Reconsider Factory Investment Plans in South Korea and US

[Nomad76]

Samsung Electronics is taking a close look at its chip design and foundry operations. This action could lead to organizational restructuring, including executive reassignments and workforce reallocation. The initiative aims to strengthen Samsung's competitive position against industry leaders such as TSMC. In January, the company's executives initiated an in-depth evaluation of the System LSI division, which handles chip design. After that, the company plans to extend the review to its foundry business. Significant restructuring may occur within the System LSI division, one proposal involves transferring the Exynos system-on-chip (SoC) business to the Mobile Experience (MX) division to better align with Samsung's smartphone strategy.

Samsung is also evaluating the potential pause of investments in its Pyeongtaek (South Korea) and Taylor (US) manufacturing facilities for its foundry business. At the same time, the company is developing strategies to improve yield rates in its advanced manufacturing processes. Moreover, Samsung is also considering changes within its image sensor business, potentially shifting focus from high-resolution sensors toward products for autonomous vehicles and robotics applications. This action represents the first major internal assessment since Samsung established its management analysis department in November 2024. The primary objective is to revitalize underperforming business divisions.



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[Daven]

Executives must have found out that the engineers just renamed 3 nm to 2 nm without any actual physical changes.

 

[TechBuyingHavoc]

Executives realized that they can blame the engineers for just renaming 3 nm to 2 nm without any actual physical changes.

FTFY