Yong-In Park, President and Head of Samsung Electronics' System LSI Business, announced on June 18 that the division is likely to post a full-year loss due to shifting market dynamics and sluggish demand, despite hitting record-high revenue in the first quarter. Park shared the business's current performance and forward-looking strategies during an internal town hall meeting with employees.
The System LSI division is Samsung's chip design arm, responsible for developing logic chips such as image sensors and systems-on-chip (SoCs).
To navigate these challenges, Park emphasized that the company is aggressively diversifying its portfolio and fortifying foundations for future growth, highlighting recent breakthroughs in securing large-scale orders for image sensors and advancing its custom SoC business. He noted that while the SoC business is unlikely to turn a profit in the short term, management is actively exploring multiple avenues to restore profitability and execute a comprehensive structural overhaul of the business.
Park also provided a status update on Samsung's proprietary mobile processors. He reassured employees that development of the next-generation Exynos 2700 is well on track, with the ultimate goal of powering upcoming flagship devices. Furthermore, he noted that Samsung's next-generation cellular processors (CP), featuring Non-Terrestrial Network (NTN) satellite connectivity, are gaining technological recognition in the market, laying solid groundwork for future market expansion.
Securities analysts and market experts estimate that Samsung's non-memory units--including both System LSI and the foundry division--will significantly narrow their losses compared to last year, with annual operating losses projected at around 2 to 3 trillion won. Some industry observers even suggest that a turnaround to profitability could come as early as next year.
