April 19, 2024

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[THE INVESTOR] Tech giant Samsung Electronics said on May 12 that it has divided its System LSI, or non-memory chip manufacturing business, division into fabless and foundry units.

The company explained the organizational restructuring is aimed at offering optimal products and services for its customers and accelerating growth for each chip business unit.

The world’s No. 1 memory chipmaker has so far run two memory and non-memory chip business divisions. The latter, called the System LSI, has produced chips for clients as well as those for Samsung smartphones.

Such an organizational structure has been considered a hurdle for Samsung to further expand its foundry business as its clients, including Apple, are reluctant to share key business information with the chipmaker that is also a market leader in smartphones and other devices.

“The foundry business unit, which has operated under the non-memory chip division, will become an independent division,” said a spokesperson from the tech giant.

The non-memory chip division will only design chips while the established foundry division will take charge of manufacturing semiconductors.

Kang In-yup, an executive vice president, will serve as head of the fabless unit while executive vice president Jung Eun-seung will lead the foundry business.

Samsung has expanded its investment in the foundry business, including opening the world’s 10-nanometer chip manufacturing plant last year. But it has yet to secure a firm footing in the segment where Taiwan’s TSMC dominates with more than 50 percent market share.

By Kim Young-won (wone0102@heraldcorp.com)