Samsung Maintains Foundry Business Amid Losses

Samsung Electronics, under Chairperson Jay Y. Lee, has firmly stated that it will not spin off its contract chip manufacturing and logic chip designing businesses, despite facing significant financial losses due to weak demand. Analysts estimate these divisions could incur billions in losses, contributing to overall poor performance as Samsung aims to reduce its reliance on memory chips. Since 2019, Lee has committed to overtaking TSMC as the largest contract chipmaker by 2030, leading to substantial investments in new manufacturing plants in South Korea and the U.S., although progress has been hampered by challenges in securing large orders from customers. The timeline for opening a new plant in Texas has been pushed back to 2026, reflecting ongoing difficulties. Despite the setbacks, Lee remains optimistic about the company's long-term growth strategy and has reiterated a dedication to these business units. The struggle to compete effectively with TSMC remains a pressing issue for Samsung.