Samsung Electronics Co. has launched a comprehensive audit of its system chip and foundry businesses as the Korean tech giant struggles to gain ground against Taiwan Semiconductor Manufacturing Co. in high-end chip manufacturing.
The company’s Management Diagnosis Office began reviewing the System LSI division in January and will soon examine the foundry business, according to people familiar with the matter. The audit marks Samsung’s first major internal evaluation since establishing the office last November.
Samsung’s foundry division, which holds just 8.2% market share compared to TSMC’s 67.1%, posted operating losses exceeding 2 trillion won ($1.4 billion) in the fourth quarter of 2024. The company’s $37 billion investment in a Texas fab faces a two-year delay to 2026.
The review follows several setbacks including the Exynos 2500 processor’s exclusion from Samsung’s flagship Galaxy S25 smartphone and difficulties securing external clients for its chip manufacturing services.
Potential changes could include transferring the Exynos system-on-chip business to Samsung’s mobile division and redirecting image sensor development toward autonomous vehicles rather than competing in high-resolution consumer products. Samsung has also recently established a team targeting Apple’s image sensor business as early as next year.
