Park Yong-in, president and head of the System LSI business at Samsung Electronics DS (semiconductors), said an annual loss for the System LSI business this year is unavoidable. He said image sensors and some system semiconductor businesses are generating revenue, but weakness in the system-on-chip (SoC) business is weighing on overall results.
According to the industry on the 18th, Park held a briefing on the System LSI business's management status that morning and shared the business situation and mid- to long-term strategy with employees. The System LSI business designs system semiconductors such as image sensors, display driver ICs (DDI), power management ICs (PMIC), and mobile application processors (AP).
At the briefing, Park said, "We achieved record-high sales in the first quarter this year, but an annual loss is inevitable due to market changes and weakened demand." He said the sensor and LSI businesses are posting large profits, but a loss in the SoC business is expected to lead to an overall loss for the business unit this year.
SoC refers to a semiconductor that integrates multiple functions into a single chip. Park also said, "It is difficult for the SoC business to return to profit in the short term, but we will review various measures to improve it."
The System LSI business is expanding its portfolio by increasing sensor orders from major customers and growing its customized SoC business. Entering the artificial intelligence (AI) data center market is also being pursued as a mid- to long-term task. Park said the company is accelerating the build-out of a new portfolio, including sensor orders from major customers and customized SoC initiatives, and strengthening the business foundation that will drive future growth. Regarding plans to develop Exynos 2700, Samsung Electronics' in-house AP, he said, "Development is proceeding smoothly with the goal of adoption in a flagship model."
Park also emphasized the importance of organizational morale and technical talent. He said, "Management will resolve structural issues and create an environment where members can focus only on technology." On the SoC losses, he said he was "regretful," but he was reported to have encouraged employees by noting that the design capabilities System LSI has accumulated are an important asset of Samsung Electronics.
Earlier, on the 12th, Han Jin-man, president and head of the Foundry business, also held a management briefing and shared business issues with employees.