Samsung has proven that it can leverage its advanced nodes to develop and mass produce cutting-edge chipsets, with the Exynos 2700 said to arrive on schedule as the company is progressing with its development without any reported hiccups. However, just because the Korean giant’s second-generation 2nm GAA SoC is showing promise, it doesn’t mean the entire division is moving with the same pace and energy. If anything, a new report states that Samsung’s SoC division is struggling, adding further weight to the entire sector.
Image sensors and system semiconductors are offsetting the sluggish chipset department, and the Exynos 2700 isn’t expected to improve the division - Here’s why
President and Head of the System LSI Business Unit, Park Yong-in, called in a brief meeting to discuss the management status of the sector. According to Chosun, he mentioned that this business unit had achieved record high sales in Q1, but an annual deficit is inevitable due to shrinking demand. He also states that image sensors and system semiconductors account for the bulk of earnings, while the Exynos lineup contributes to losses.
That’s not to undermine that Exynos 2700 in any manner because the executive has said that “development is proceeding without setbacks with the goal of equipping it in flagship models.” The reason why the chipset division continues to absorb losses is due to Samsung’s inability to improve its 2nm GAA yields. At present, the next-generation lithography is estimated to operate at 60 percent yields, which is insufficient to begin placing orders for outside customers.
This means that each 2nm GAA wafer will produce fewer Exynos 2700 units, leading to additional losses. Next year, it’s estimated that Samsung’s upcoming flagship SoC will be found in 50 percent of all Galaxy S27 shipments, up from 25 percent. While this is tremendous progress on Samsung’s part, you’re forgetting a major drawback. A large shipment of Exynos 2700 means there will be an increased number of defective units on the 2nm GAA wafers.
Naturally, these will go to waste instead of being utilized elsewhere, highlighting the reason for the System LSI Business Unit’s annual deficit. Fortunately, there’s a silver lining in all of this. If the Exynos 2700 can prove itself against the A20 Pro, Dimensity 9600, and the Snapdragon 8 Elite Gen 6 Pro, customers might restore their confidence in Samsung, leading to additional orders being placed for the 2nm GAA technology. This will effectively turn around the company’s semiconductor business.
Unfortunately, it’s easier said than done, but President Park says that he’s reviewing all possible options to turn things around. Hopefully, a resolution will be found early.
News Source: Chosun
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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