Inside Samsung: Financial Woes Could Force A Chip Division Merger

Samsung is going through a bit of a rough patch, as its chip division is struggling. As such, the company will need to make some tough choices. According to a new report, Samsung may consider merging System LSI with another subsidiary within the company.

As you may know, Samsung is a massive corporation, and it’s composed of several different divisions. System LSI is the division that manufactures Exynos chips, along with ISOCELL camera sensors and chips for other companies. It’s been the main money maker for Samsung over the years, so the company is treading lightly with any future decisions regarding the division. Right now, Samsung has not made any final decisions just yet.

Samsung could merge System LSI with another subdivision

The big hats over at Samsung are mulling over what they plan to do with its biggest division. Profits have been plummeting recently, as much of Samsung’s business has been moving elsewhere. So, merging might be the only way to keep things from getting worse.

According to the report, Samsung executives have outlined three potential options. The first option is to merge System LSI with Samsung MX. In case you don’t know, Samsung MX is the company’s mobile tech division. This subsidiary makes its phones, tablets, and computers.

The second option is to merge it with Samsung Foundry. This is the subsidiary that fabricates chips for its own Exynos brand and others. Lastly, it could greatly restructure System LSI. We’re not 100% sure of what that entails, but we’re pretty sure that it means making some serious changes to the company and its staff to maximize earnings.

Whatever Samsung decides to do, the subsidiary is in for some major changes. Because of the current economic climate, among many other reasons, Samsung is preparing for the worst. It may take months or even years to know if these decisions have any sort of effect on the company. So, we’re going to have to wait to see what Samsung does.