Samsung’s chip-manufacturing sector is struggling, with low yields affecting performance. The Galaxy S25 series exclusively used Snapdragon, though Exynos may return in the upcoming S26 series. Reports indicate serious issues within Samsung’s LSI (chip design arm), prompting discussions of a merger with either Samsung MX or Foundry. Recent internal meetings revealed three potential scenarios: merging LSI into MX, Foundry, or restructuring LSI. A merger with Foundry is currently favored, though no final decision has been made. Notably, LSI and Foundry were merged under Samsung DS before being separated in 2017 to prevent conflicts of interest with clients.
Samsung’s chip manufacturing sector is facing challenges, with low yield being a significant factor. This year, the Galaxy S25 series exclusively utilized Snapdragon processors. However, if rumors hold true, the Exynos chip is set to return for the S26 series.
Problems within Samsung’s LSI (the chip design division) run deep, leading to speculation about a merger with another division, likely Foundry. Early rumors hinted at a merger between Samsung MX (Mobile Experience) and LSI, but recent developments indicate a focus on a Foundry-LSI merger instead.
A South Korean news outlet reported that during an internal meeting, three scenarios were considered: merging LSI with MX, merging LSI with Foundry, or undertaking a significant restructuring of LSI. Sources close to the situation indicate that a merger with Foundry is the preferred option, yet no final decision has been reached.
It’s noteworthy that LSI and Foundry were previously part of the Samsung DS (Device Solutions) division but were separated in 2017 to mitigate potential conflicts of interest with other Samsung Foundry clients, such as Nvidia and Qualcomm.
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