Samsung Foundry May Spin Off into New Company

Samsung Foundry May Spin Off into New Company

Samsung Foundry Faces Challenges

Samsung Foundry is currently facing difficulties, as shown by a recent report indicating that the company plans to shut down part of its 7 nm, 5 nm, and 4 nm production lines due to low demand. This decision has led to a significant loss of 1 trillion KRW. Although the situation could potentially improve with the introduction of newer nodes, such as 3 nm and beyond, some within Samsung believe it may be wiser to completely separate the foundry business.

Task Force Formation for Separation

According to a report from South Korean news outlet Topdaily (H/T @Jukanlosreve on X), Samsung has reportedly established a 'task force' aimed at detaching Samsung Foundry from Samsung Electronics. This project is expected to be resource-heavy and could take anywhere from 3 to 5 years to complete. Despite this, Lee Jae-Yong, the leader of Samsung Electronics, is against the plan. There appears to be tension within Samsung regarding this matter, suggesting that it may take some time before any definitive decisions are made.

The Potential for Increased Autonomy

On paper, spinning off Samsung Foundry from Samsung Electronics could grant the foundry more independence. However, the company still needs to tackle fundamental issues with its production processes. While TSMC's N3 family of nodes has attracted major clients like Qualcomm, Apple, MediaTek, and even Intel, Samsung's equivalent nodes have struggled to find customers, even though they utilize the advanced GAAFET technology.

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