In a bid to enhance profitability within its foundry and logic chip design segments, Samsung is contemplating discontinuing the development of new Exynos Auto series chips tailored for automotive use. Nevertheless, the company will persist in fulfilling its existing contractual obligations to Hyundai and BMW. The development expenses associated with this series of chips are notably high, surpassing KRW 100 billion per chip, while the selling prices hover between a mere $20 and $40. Furthermore, the automotive chip market is predominantly controlled by Qualcomm, posing significant challenges for Samsung to achieve profitability.
Consequently, Samsung has opted to redirect its efforts towards high-margin domains, such as mobile System on Chips (SoCs) and camera sensors. The company aims to augment the utilization of Exynos chips within its own smartphone lineup. Notably, Samsung has successfully secured orders for camera sensors for Apple's forthcoming iPhone models, with production already in full swing at its Austin foundry facility.
In addition, Samsung is strategically positioning itself in the burgeoning markets of AI data center chips, display driver integrated circuits, and power management integrated circuits, as part of its broader initiative to diversify its business portfolio and bolster its competitive edge.
