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Samsung Reported to Separate Its Chipset Division as Part of Its Restructuring Plan

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Dec 12, 2016
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Samsung is aiming to grow its semiconductor business and it is intending to achieve that without the help of its partners. Instead, the latest report suggests that the company is planning to separate the design and manufacturing sectors of the business division, and decide whether to divide or spin it off to its fabless and foundry business.

Report Suggests That the Decision From Samsung Came After It Lost to TSMC for the Position of Chief Chip Supplier to Apple’s iPhones

Since TSMC became Apple’s primary supplier for its iPhones, Samsung is raising awareness to separate the foundry business division. Since Apple sells more phones than any other manufacturer on the planet, Samsung must have lost out on a lucrative deal. While it could cover up with speeding up mass production of its 10nm FinFET chips, losing Apple is definitely a blow to Samsung, hence the latest report.

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Samsung’s System LSI business division is primarily comprised up of 4 areas:

  1. SoC: Division that makes mobile application processors
  2. LSI development: The division which designs display driver chips and camera sensors
  3. Foundry business
  4. Support business

Industry sources have commented that Samsung is now considering forming the fabless division by merging the SoC and LSI development teams and separating these entities from the foundry business. The reason why Samsung could be doing this is because the Korean giant would be able to expand the business more systematically by dividing its system semiconductor design and manufacturing capabilities. Qualcomm recently announced its 10nm FinFET Snapdragon 835, making it one of the biggest announcements of the year, and showing that Samsung has a lot of partners that it can rely on to deliver that much-needed growth.

Another factor why Samsung might be forced to make this decision in the future is thanks to the Note 7 debacle. With nearly 2.7 million units recalled, this is perhaps the biggest setback for a manufacturer in smartphone history, but luckily Samsung had a ton of capital to survive the storm. Do you think it would be a wise decision for Samsung to go through with this restructuring process? Tell us your thoughts in the comments right away.

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