[News] Samsung Reportedly Reviews Chip Business, Considers Halting Pyeongtaek and U.S. Taylor Investments

According to a report from ijiwei, citing The Korean Economic Daily, Samsung Electronics has been examining its chip design and foundry businesses closely, considering a potential restructuring. The review may include an executive reshuffle and workforce reallocation, as the report notes.

The report suggests that this business review marks Samsung’s first major internal audit since the establishment of the Management Diagnosis Office in November in 2024.

As reported by The Korean Economic Daily, sources suggest that Samsung’s Management Diagnosis Office launched a comprehensive evaluation of its System LSI division, which focuses on chip design, in January. Following the completion of this assessment, the office is expected to extend its scrutiny to the company’s foundry operations.

Samsung’s business review is anticipated to bring substantial changes to the System LSI division. The report mentions that, citing sources, Samsung is considering transferring its Exynos system-on-chip (SoC) business from the System LSI division to the Mobile eXperience (MX) division to better align with Samsung’s overall smartphone strategy.

Regarding its foundry business, Samsung plans to evaluate the feasibility of suspending investments in its Pyeongtaek plant in Korea and Taylor plant in the U.S. The company’s $37 billion US fab in Taylor, Texas, has been delayed, with production now set for 2026 instead of its original timeline, the report adds.

As noted by the report from The Korean Economic Daily, with TSMC recently unveiling a USD 100 billion expansion plan in the U.S., analysts cited in the report express growing concerns over whether Samsung can secure enough major clients to justify its investment in the U.S..

Samsung’s foundry business posted more than 2 trillion won (USD 1.4 billion) in operating losses in the fourth quarter of 2024, as noted by The Korean Economic Daily.

According to TrendForce, Samsung Foundry remained the second-largest foundry in the third quarter of 2024, holding just a 9.3% market share, while TSMC dominated with nearly 65%.

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(Photo credit: Samsung)