Samsung rejects foundry spin-off rumours, strengthens integrated semiconductor strategy

Despite challenges such as delays at its Texas factory due to changing US policies and financial losses in the foundry unit, Samsung is committed to its current operational structure to drive innovation and maintain competitiveness.
Samsung apologised for missing market expectations, reporting a Q3 profit of $6.64bn as AI chip rivals like Nvidia surged ahead.

Samsung Electronics, the world’s largest memory chipmaker, has dismissed speculation that it will spin off its foundry business, which produces semiconductors for other companies. Chairperson Jay Y. Lee emphasised the company’s commitment to growing the foundry business within Samsung’s broader semiconductor operations, citing the advantages of leveraging synergies between its memory and logic chip divisions.

The pressure to keep pace with industry leader TSMC has fueled talk of a possible spin-off, as analysts suggest it could allow Samsung to operate more independently and attract additional clients. However, Samsung believes keeping the foundry business aligned with its overall operations is strategically beneficial, enabling it to streamline processes and stay competitive in a technology-driven industry.

The company is focused on expanding production, particularly in advanced technologies like 3-nanometer chips, and aims to overtake TSMC as the largest contract chipmaker by 2030. Despite these ambitions, Samsung faces challenges, including delays in its new Texas chip factory due to shifting US policies and financial losses in its foundry unit.

Nonetheless, the company remains committed to its current structure, viewing it as key to pushing the boundaries of semiconductor innovation and maintaining its market position amid fierce competition.