The foundry business belonging to Samsung might not be in complete shambles, but it is no secret that the company has made attempts after attempts to bridge the market share between it and TSMC, but its efforts have yet to yield the desired results. With the Korean giant failing to bring in new customers to place orders for its cutting-edge 3nm GAA wafers due to poor yields, there were multiple reports claiming that the company would spin off its foundry arm, plus its logic chip designing operations. However, according to the latest report, a Samsung executive has buried both claims, saying that there are no such plans for either of the two entities.
Chairperson says that Samsung is hungry to grow its chip business and envisions the company becoming the largest semiconductor manufacturer in 2030
Speaking to Reuters and dispelling any rumors related to spinning off the foundry business, Chairperson Jay Y. Lee has acknowledged that Samsung is facing a wave of challenges, with the firm’s earnings guidance for Q3 2024 also below expectations, despite operating profit said to be 274.5 percent higher than the Q2 2024 period. Fortunately, Lee likely believes that Samsung will persevere through this adversity because ‘we are hungry to grow the business.’
The Chairperson did not comment on the competition obtaining a lead in the semiconductor race, but Samsung has failed to ride the booming AI race by being unsuccessful in securing chip orders from NVIDIA. It is reported that the company will mass produce its next-generation HBM4 memory by the end of 2025, but Samsung has yet to surpass SK hynix when it comes to supplying such chips used in AI servers.
As a consequence of failing to improve its 3nm GAA yields, analysts estimate that the foundry and System LSI logic chip designing business will lose another 2.08 trillion won, or $1.564 billion this year. A former Samsung engineer and a professor in System Semiconductor Engineering at SangMyung University said that it would be in the company’s best interest to spin off the two entities and gain its trust back from customers.
However, he mentions that the businesses might not survive while operating as standalone firms because direct financial assistance from Samsung’s memory arm will be severed. Just recently, we reported that local companies have stopped placing chip orders for Samsung’s mature nodes and have partnered with TSMC instead. Needless to say, climbing a mountain to bring the foundry business on track could be a massive understatement.
News Source: Reuters
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.
Follow Wccftech on Google to get more of our news coverage in your feeds.
