Samsung's chip-manufacturing sector is facing significant challenges, particularly due to poor yield from its LSI division. The recent Galaxy S25 series has shifted entirely to Snapdragon processors, although Exynos may return for the S26 series. Reports suggest a potential merger of LSI with either Samsung MX or Foundry, with the latter being favored. These discussions arise as Samsung looks to address longstanding inefficiencies and improve its competitive position in the chip market, particularly after previous divisions were restructured to avoid conflicts with other clients like Nvidia and Qualcomm.
Samsung's current chip manufacturing struggles are notably influenced by poor yield rates, prompting a complete switch to Snapdragon for this year's Galaxy S25 series.
With deep-rooted issues within Samsung LSI, there's speculation over its potential merger with Foundry to improve efficiency and resolve ongoing challenges within chip design.
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