When the Samsung Galaxy S23 lineup of phones rolled around the company made the decision to switch all of its Ultra models over to Snapdragon. A privilege previously exclusive to certain markets only, this decision came about as a result of poor performance from Samsung Foundry’s Exynos chips. Now we’re about to see global layoffs of up to 30 percent of Samsung’s international workforce as the company also withdraws personnel from its manufacturing plant in Texas.
Though it hadn’t even become fully operational yet, Samsung’s plant in Taylor, Texas is now being operated by a skeleton crew. The plant was supposed to help cement the company’s chip manufacturing dreams. Falling behind and losing customers to TSMC (Taiwan Semiconductor Manufacturing Company) has spurred the company into overdrive, but to no avail as of yet.
The main reason for Samsung’s lack of success in the chip manufacturing business is its poor yield. According to reports, the 2 nm chips Samsung has been working on have a yield as low as 10 percent at times. This seriously puts in jeopardy Samsung’s plans to manufacture 1.4 nm chips by 2027.
A “semiconductor professor” claims that the company’s archaic ways of conducting business are to blame for this failure.
The pervasive bureaucracy within Samsung, slow decision-making, and low compensation are the main reasons for the decline in foundry competitiveness.
At the same time there are reports of Samsung considering laying off up to 30 percent of its global workforce. That’s not just a reflection of the company’s current state, it’s also a severe blow to countless people’s livelihoods.
Exynos has consistently underperformed over the years. | Image credit — PhoneArena
Samsung is trying desperately for Exynos to make a comeback. In-house chip development has the potential to completely revolutionize a company’s products. Just look at Apple silicon, for example, and the company is even planning to start producing in-house cellular modems for iPhone, iPad and more.
As we continue to see even slimmer Samsung phones the need for smaller chips intensifies. And if Samsung Foundry can’t supply that need or retain other customers, the company continues to spend more and conduct further layoffs.
Create a free account and join our vibrant community
Register to enjoy the full PhoneArena experience. Here’s what you get with your PhoneArena account:
Abdullah loves smartphones, Virtual Reality, and audio gear. Though he covers a wide range of news his favorite is always when he gets to talk about the newest VR venture or when Apple sets the industry ablaze with another phenomenal release.
Recommended Stories
Loading Comments...
COMMENT
All comments need to comply with our
Community Guidelines
Phonearena comments rules
A discussion is a place, where people can voice their opinion, no matter if it
is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some
random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
Off-topic talk - you must stick to the subject of discussion
Offensive, hate speech - if you want to say something, say it politely
Spam/Advertisements - these posts are deleted
Multiple accounts - one person can have only one account
Impersonations and offensive nicknames - these accounts get banned
Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a
post should be moderated - please, report it.
Have a question about the rules or why you have been moderated/limited/banned? Please,
contact us.
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed: