[Report] Samsung Foundry Division undergoes major restructuring

Samsung Foundry is not doing well with the newest cutting-edge technologies. Now, a new report from a Korean media outlet suggests that Samsung could begin DS Division restructuring by year-end, aiming to break down silos.

According to ChosunBiz (via TrendForce), Samsung plans a major shuffle in the DS (Semiconductor Foundry) Division. The move is aimed at addressing issues like lack of communication and team self-interest.

Additionally, Samsung is also facing competition in the DRAM market, falling behind SK Hynix in HBM and DDR5. TrendForce highlights that the company needs to go beyond restructuring to fundamentally change its organization.

Samsung’s DS division reportedly planning to strengthen collaboration processes by integrating existing team-based structures into a project-centered model, to resolve issues arising from the siloed operation of departments.

Recently, it was reported that the company is planning to cut up to 30% of its workforce in the future. The Korean tech giant’s Foundry business is struggling due to various issues, including low yields for the 3nm GAA process.

Earlier, The Korea Times reported that yield for Samsung’s 3nm process remained in the single digits until Q1 this year, and slightly improved to about 20% in Q2. The company needs the yield rate to be at least 60 percent to trigger mass production.

A Samsung spokesperson cited by Chosun Biz admitted that there continues to be a disconnection between the departments developing new processes and those responsible for mass production, with serious issues arising from the shifting of blame for failures.