Samsung shows no interest in splitting its chip production units.


October 8, 2024 by our News Team

Samsung is not planning to split its semiconductor manufacturing and logic board production despite rumors and investor proposals, with plans instead to expand its divisions and address challenges in attracting new clients.

  • Samsung's CEO has indicated that the company plans to expand its divisions rather than splitting them, showing a commitment to growth and innovation.
  • The company's semiconductor division, Samsung Foundry, is a significant area for the company and is expected to continue to play a major role in its future plans.
  • The decision to not split the company shows stability and confidence in its current structure, which may be reassuring to investors and stakeholders.


Rumors have recently surfaced suggesting that Samsung may be considering a split between its semiconductor manufacturing and logic board production. However, it appears that these rumors will not materialize, according to the latest information from the company. The possibility of a separation within the company arose after both units experienced operational losses in the last quarter, prompting investors to propose various measures, including a split. However, Reuters reports that this is not entirely true. While the idea was discussed among investors, it was not seriously considered as a viable option. Samsung’s CEO, Jay Y. Lee, has indicated that the company’s plans involve expanding its divisions rather than separating them. Samsung Foundry, which produces semiconductors, is currently a significant area for the company but is also facing challenges in attracting new clients, especially after the construction of two new factories in South Korea and the US. The opening of a new factory in Texas is also on hold and is expected to take place in 2026, following the US presidential elections and due to internal changes, although specific details about these alterations have not been disclosed.

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Background Information


About Samsung:

Samsung, a South Korean multinational conglomerate, has established itself as a global leader in various industries, including electronics, technology, and more. Founded in 1938, Samsung's influence spans from smartphones and consumer electronics to semiconductors and home appliances. With a commitment to innovation, Samsung has contributed products like the Galaxy series of smartphones, QLED TVs, and SSDs that have revolutionized the way we live and work.

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Technology Explained


Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).

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