After many reports this year about Samsung Foundry facing unprecedented failure we’ve got our hands on some hard numbers, and they don’t look good. Not at all. From layoffs to poor yields and abandoned plants, the company is struggling to bring Exynos back to the forefront.
Before this year ends Samsung Foundry plans to eliminate a whopping 30 percent of its workforce via a “four-round voluntary retirement program”. That means a lot of people are suddenly about to find themselves without a source of income.
Furthermore, the company wants to cut down chip production by a staggering 50 percent. Yes, half. With yield rates as low as 10 percent this means Samsung will barely have any viable chipsets to show for its trouble. As it stands, Samsung is unable to improve its yield rates even for 3 nm chipsets, and as such the entire Galaxy S25 family is rumored to feature Snapdragon processors.
This also means that Samsung’s plans to be producing 1.4 nm chipsets by 2027 are basically null and void. Apple, meanwhile, is looking to replace another component with an in-house alternative across all of its devices, giving it more control and helping it save on manufacturing costs.
The Samsung Galaxy S24 Ultra runs on a Snapdragon processor. | Image credit — PhoneArena
There are also rumors going around (albeit dubious ones) about Samsung and Apple planning to buy Intel. If such a thing does happen it might lead to the resurrection of Samsung Foundry. However, it’s unlikely to happen because it would give either company too much of a monopoly. Current reports suggest that Intel might be merged with Qualcomm instead.
On the bright side, consumers are expected to get some really good processors in their new Galaxy phones. The Snapdragon 8 Elite looks to be a very powerful chip and it will most likely be powering the Galaxy S25 Ultra. Performance and efficiency scores coming out show numbers that would’ve taken Exynos years to catch up to.
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Samsung Foundry has also failed to attract other customers and may end up splitting away from Samsung. Employees at the company believe that a lot of Samsung’s issues are due to upper management’s way of handling problems. According to interviewed employees Samsung is in crisis.
The company needs a major breakthrough for improved yield rates or it might just shut down for good as Exynos fails to keep up with new chipsets decreasing in size every year.
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Abdullah is an ardent believer in the future of VR, and can't wait to see what more it brings to the table as technology improves. He enjoys covering new software releases in the XR industry, as well as major news about hardware and companies focused on VR.
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