The 2nm GAA process is slowly gaining traction through improved yields, with Samsung’s more mature 4nm and 8nm nodes increasing in utilization, becoming one of the reasons why the Korean giant is slowly approaching the path of profitability. Unfortunately, there’s always some resistance in the way, and according to the company’s semiconductor head, it’s performance-based bonuses and a mobile-centric business structure that’s getting in the way.
Other problems getting in the way of Samsung’s projected foundry profitability timeline of 2028 are poor strategies, with the executive pinning some of the blame on management
The President of Samsung’s DS division, Han Jin-man, addressed employees in a meeting, talking about how it’s difficult for a foundry business to turn a profit next year, but 2028 could be when the company finally catches a break. With an estimated 130 percent increase in 2nm chip orders, it’s clear that Samsung is on a mission to finally put its incessant criticisms to rest.
However, as you would expect, there are more than just a few obstacles standing in Samsung’s way to obstruct its progress, with the company’s semiconductor head stating that performance-based bonuses, which utilize 10.5 percent of the annual operating profit, are causing a delay in Samsung’s ability to break this deficit ceiling.
He also mentions that a mobile-centric business structure, insufficient technological maturity, a low-profitability order structure, and inadequate strategies are what are hindering Samsung from posting a profit earlier. Han Jin-man hasn’t suggested abolishing performance-based bonuses in favor of early profits, but if Samsung implements it, it could backfire considerably.
During the AI boom, Samsung’s fortune has been allowed to return, with its memory division raking in the profits. However, these earnings didn’t go under the radar of the workers, who threatened an 18-day strike unless they got a cut of those profits. Eventually, the strike halted, but not before production arrived at a standstill. For now, Samsung’s DS sector will have to keep observing these performance-based bonuses while also working to stabilize its 2nm yields.
Presently, the company isn’t viewed as a viable alternative to TSMC, but only as a backup option thanks to its access to next-generation manufacturing processes. Unless these figures reach the 70 percent mark, we don’t see Samsung taking some of TSMC’s customers away from it.
The Exynos 2700 presents a golden opportunity for the foundry giant to showcase its top-tier technology, with the possibility that its improved performance and efficiency carve a comeback story. However, with Qualcomm in the picture and offering Samsung attractive discounts on future SoCs, it might become difficult.
News Source: ZDNet Korea
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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