Samsung reportedly considering merging its semiconductor chip divisions

Jenith

Well-known Member
Joined
Mar 25, 2019
Posts
49,717
Likes
126
Samsung's chip division has been the major source of the company's revenue and profit over the past few decades. However, lately, its chip businesses have been struggling. System LSI, a sub-division of Samsung's chip business, has been struggling the most. Hence, the company is reportedly considering merging it with other divisions.

System LSI designs Exynos chips, ISOCELL camera sensors, and other types of sensors for several applications.

System LSI could reportedly be merged into Samsung Foundry​


https://www.imeisource.com/wp-content/uploads/2023/10/Samsung_Exynos.jpg

According to a report from SEDaily, the senior management at Samsung Electronics recently held a meeting to decide the fate of System LSI. After reviewing the performance of all the business divisions under Samsung Electronics, the high-level management team reportedly brought up three options:

    • Merge System LSI into Samsung MX.
    • Merge System LSI into Samsung Foundry.
    • Massively restructure System LSI.

After the meeting, a final decision was not made, but the report claims that the option of merging System LSI into Samsung Foundry is gaining weight. There might be additional meetings in the near future before a decision is made by Vice Chairman Chung Hyun-ho (vice chairman of Business Support TF) and Jeon Young-hyun (vice chairman of Samsung DS) after a final discussion with Jay Y. Lee (chairman of Samsung Electronics).

https://www.imeisource.com/wp-content/uploads/2024/04/Samsung-Semiconductor-Chip-Plant-Taylor-Texas-USA-Construction-Site.jpg

System LSI was already a part of Samsung Foundry until 2017 when the former was separated to reduce complications from Samsung Foundry's clients (like Qualcomm, Nvidia, and others). However, the option of merging them back together is gaining ground as there is internal opinion that the merger of System LSI into Samsung Foundry is important to succeed the short-term goal of succeeding in the sub-2nm chip design and fabrication.

Don't worry if you don't know Samsung DS, Samsung Foundry, Samsung MX, or System LSI is. We will give you a short idea about these divisions. All these business divisions come under the larger umbrella of Samsung Electronics.

    • Samsung Device Solutions: It is combination of Samsung Foundry, Samsung Memory, and System LSI divisions.
    • Samsung Foundry: It fabricates (manufactures in simpler terms) semiconductor chips for Samsung as well as other firms like Nintendo, Nvidia, and Qualcomm.
    • System LSI: It designs processing chipsets and sensors. It designs Exynos chips for smartphones, tablets, and smartwatches. It also designs ISOCELL camera sensors and other types of sensors that are used in mobile devices, automobiles, and several other types of products. Usually, all the chips and sensors System LSI designs are manufactured by Samsung Foundry.
    • Samsung MX: It is a sub-division of Samsung Electronics that makes smartphones, tablets, wearable devices, and laptops. A few years ago, it was merged with Samsung DX.
    • Samsung DX: This division makes TVs, monitors, and several types of home appliances such as ACs, refrigerators, and washing machines.

If Samsung moves ahead with the merger of System LSI into Samsung Foundry, it could increase the risk of fabless chip clients like Qualcomm and Nvidia to move further away from Samsung to get their chips made, as they might think their chip designs could be stolen by System LSI.

The post Samsung reportedly considering merging its semiconductor chip divisions appeared first on imeisource.
 
Back
Top