Unfortunately, Samsung is losing money on its Exynos processors and will have to determine a new plan of action to mitigate the losses. The Large Scale Integration (LSI) System division of Samsung Electronics is having issues. In charge of chip design and development and semiconductor solutions, this division is responsible for the integrated circuits, processors, and sensors found in Samsung’s many gadgets. It is responsible not just for producing Exynos but also for the ISOCELL image sensors and the company’s proprietary 5G modems.
This is how Samsung is planning to fix a processor that is making them lose a lot of money
According to Korean reports, Samsung is thinking about doing a complete reorganization to salvage this division’s current precarious financial state. All of this has been refuted by the firm. The Exynos 2600 will be a crucial component of this division’s future, but there is no denying that we do not yet know what will happen to Exynos processors in high-end devices. An estimated 1 trillion won was lost by the System LSI division in 2024, partly as a result of the Exynos 2500 processor’s failure to be integrated into the Galaxy S25 series. After Qualcomm’s processor failed to deliver the required performance, this model ultimately hit the market with Qualcomm’s processor.Â
In February, Kwon Hyung-man, general manager of the System LSI division, admitted that the loss of this chip’s introduction for the Galaxy S25 series would continue to slow down the business unit’s performance. It has been suggested that the corporation might combine its semiconductor and handset manufacturing facilities to relieve the situation. It is possible to improve component integration and efficiency by combining semiconductor design and smartphone design under one roof. It would be difficult because the later division’s financial performance might suffer as a result of this integration. Samsung Electronics has denied that this rearrangement will be effective (for the time being), despite Korean sources suggesting otherwise.Â
The future of Samsung’s Exynos processor in 2026
The future of the LSI division may depend on the performance of the Exynos 2600, the next generation of processors. The business is currently working on this chip utilizing the SF2 (2 nm) process to turn things around. The Exynos 2600’s first step, which entails the changeover from design to production, was just finished, marking a significant turning point in the manufacturing process. Samsung has a big obstacle to overcome.Â
Qualcomm is experiencing one of its best periods ever, with an Elite 8 that has demonstrated performance never seen before, MediaTek competing with and, for the first time in many years, matching its direct competitors, and Apple remaining a major player in setting the standard for chip performance. Regaining profitability in this sector will depend on internal cooperation and efficiency in the creation of the upcoming Exynos 2600 processor. Exynos’s strategy for the upcoming years may be greatly impacted by the ultimate decision about the rearrangement of the System LSI business and the company’s destiny.
Samsung exports to China have outpaced the US
In 2024, Samsung exported more to China than the United States. Due to Trump’s tariffs and the political shift in the US, China benefited from global OEMs, and Samsung exported record-breaking items to the nation. According to a recent Yonhap News Agency report, Samsung’s shipments to China climbed 53.9% year over year to reach 64.9 trillion won ($44.8 billion) in 2024, according to the company’s annual business report.Â
South Korean companies Samsung and SK Hynix experienced a notable uptick in their performance in the Chinese market in 2024 as a result of the Chinese government’s Two-New strategy and worries about Trump’s tariff threats. Most of its exports to China came from chip sales. With KRW 30.07 trillion in sales, Samsung’s semiconductor sales subsidiary in Shanghai also experienced a notable increase.
