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
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.
