Samsung Global Research's Management Diagnosis Office has reportedly begun a management diagnosis of the System LSI division, which is responsible for the design of Samsung Electronics' semiconductor business. The analysis suggests that Samsung Group has entered into a management diagnosis due to struggles in key businesses of the System LSI division, such as the 'brain of mobile' application processor (AP) business.
According to industry sources on the 7th, Samsung's Management Diagnosis Office has been conducting a management diagnosis of the System LSI division since January. It is understood to be the first management diagnosis conducted by the Management Diagnosis Office established under Samsung Global Research in November of last year. It has been reported that the Management Diagnosis Office has not yet started a management diagnosis of the foundry division, which recorded significant losses last year.
Last year, it is analyzed that Samsung Electronics' System LSI division initiated an auditing process due to a lack of distinct business results despite significant investments. Samsung had set a goal to invest 171 trillion won by 2030 to achieve the top position in the system semiconductor market.
The AP Exynos series, designed by the System LSI division, is struggling in the semiconductor design sector, as it was not included in the Galaxy S25 due to yield and performance instability. Instead of the AP 'Exynos 2500' designed by the System LSI division and manufactured by the foundry division, Qualcomm's 'Snapdragon 8 Elite' was used in the Galaxy S25 released by Samsung Electronics' mobile division.
Attention is focused on whether additional diagnostics and organizational restructuring of the foundry division will follow based on the results of this management diagnosis. Samsung Electronics' foundry division is also suffering from poor order intake, leading to a widening gap in market share with TSMC, the world's leading company. Samsung Electronics' foundry market share fell from 18.8% in the second quarter of 2020 to 8.2% in the fourth quarter of last year.