Samsung is thinking about spinning off its lame semiconductor production into a separate company

The financial performance of Samsung Electronics’ contract chip manufacturing division is integrated into the reporting of the entire non-memory semiconductor components business, so it is not possible to analyze them in their pure form. Experts at Samsung Securities recommend that the parent company separate its contract business and list its shares in the United States.

Image Source: Samsung Electronics

In a situation where even Intel is faced with the need to give its production division more independence, one cannot expect any other recommendations from analysts close to Samsung. Similar comments were made back in July of this year, as Business Korea explains.

Problems continue to plague Samsung’s contract business. In the current half of the year, the company began serial production of chips using the second generation 3nm process technology and GAA transistor structure, but it was unable to attract large customers due to problems with the stability of the quality of the relevant products. There are also delays with the development of the 2nm process technology, and the flagship smartphones of the Galaxy S25 series may even lose their own 3nm Exynos 2500 processors, since competitors’ products will be more successful, as is generally believed.

In the global market for contract manufacturing services for chips, Samsung was content with a share of no more than 11.5% at the end of the second quarter, while the leading TSMC claimed 62.3%. The company’s non-memory chip division is projected to post an operating loss of $385 million in the third quarter. The company’s Oct. 24 Foundry Forum will be held online for the first time in a long time, indicating its desire to save money. Representatives of Samsung Securities emphasize that proximity to potential clients is an important argument in favor of building new enterprises in the United States; in the same market, additional capital can be raised through an IPO if Samsung’s contract business is separated into an independent company.