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Samsung Foundry may split from Samsung – Advantages and Challenges
Samsung Foundry may become a separate firm in 3 to 5 years. The company has established a task force within the business that is responsible to sequentially split the Samsung Foundry division from Samsung Electronics.
Korea’s TopDaily reports that Samsung Foundry may split from Samsung Electronics. The task force has three to five years to complete a smooth spin-off. With this strategic move, the company aims to attract major clients.
Samsung Foundry Spin-off
Samsung launched the Foundry division as an independent business in 2017. Since then, the company has been focussing on ambitious investments to foster business growth. However, the division is set to post significant losses this year.
The market has long demanded that Samsung spin off its Foundry business. Industry insiders believe that splitting the foundry business would be beneficial for attracting clients, as greater independence would help secure customer contracts.
Should Samsung spin off the Foundry division?
Separating Foundry from Electronics would be quite challenging for Samsung. The company will be requiring massive funding to spin off the Foundry business. The funding from other firms will significantly affect their performance and growth rate.
Reports say tens of trillions of KRW (billions of dollars) investment will be needed for Samsung Foundry. That said, it will be more advantageous for the foundry to remain under Samsung’s umbrella and secure growth.
How separation will benefit?
After TSMC, Samsung Foundry is the second-largest semiconductor foundry in the world. The company is involved in both memory and system semiconductors. Additionally, it also operates in Foundry and Fabless businesses.
Meanwhile, these advantages are somehow backfiring Samsung Foundry. It is speculated that foundry clients may find it burdensome to entrust semiconductor designs—considered their trade secrets—to Samsung Elec and System LSI.
System LSI division runs a fabless business focused on 5G and AI chips, which competes to some extent with fabless companies like Qualcomm, NVIDIA, and Apple, which could be retained by Samsung Foundry after separation.
Owners of select Samsung Smart TVs, monitors, The Premiere 7 & 9 projectors, or The Freestyle 2nd Gen can stream Call of Duty: Black Ops 6, Flight Simulator 2024 and hundreds of other games with Gaming Hub Xbox Game Pass.
Call of Duty: Black Ops 6 and Flight Simulator 2024 are two of the most popular games of 2024. Thanks to Samsung Gaming Hub, you don’t need to download any of the Xbox Game Pass titles, no meaning no storage required – just jump in and play.
The company has also built an engaging gameplay experience designed by fans, for fans through The Six, challenging players’ knowledge and providing another way to interact with the world of Call of Duty: Black Ops 6.
Notably, Samsung’s Gaming Hub is available on a variety of Samsung screens. It includes the AI-powered 2024 TV lineup, monitors, projectors, The Premiere, and The Freestyle 2nd Gen projector, offering instant access to console-free gaming.
Anyone with a Samsung Smart TV will be able to use their remote to jump in and play. This way, Gaming Hub provides a co-branded experience, giving Call of Duty fans another way to engage with the franchise they love.
For starters: The Six offers daily trivia where players can answer a series of six questions in competition with other players around the world. Correct answers with the fastest response time will achieve higher scores.
Samsung could launch the Galaxy ixi-O AI Phone next year. The company has collaborated with LG Uplus to develop a custom smartphone. The device is said to feature Galaxy AI and LG Uplus’s AI call assistant ixi-O.
Sources citing KEDGlobal revealed that Samsung and LG Uplus working together to develop the Galaxy ixi-O AI Phone. It’s a big development in the smartphone industry, while the handset is highly likely to be Korea-limited.
Samsung fans are well aware of the Galaxy AI feature suite. ixi-O is an AI-powered digital assistant developed by Korean carrier LG Uplus. The company plans to enter the smartphone market, featuring its own-developed AI assistant.
The report indicates that Samsung and LG Uplus’ ixi-O AI Phone will launch as early as next year. The development project focuses on crafting a “real AI phone” that goes beyond simply integrating AI assistant services into a smartphone.
ixi-O comes with useful features such as AI call answering, detecting voice phishing in real-time, recording and summarizing phone calls and converting voice conversation into text – all within an on-device environment.
Image: ixi-O AI | LG Uplus Newsroom
Based on specifications, the Galaxy ixi-O AI Phone will be based on a Galaxy phone available globally. The design will match with a global Galaxy smartphone, but the software may be tweaked as per the carrier’s requirements.
A custom Galaxy phone isn’t shocking or impossible in South Korea. Samsung releases Quantum, Buddy, and Jump-branded phones in the market. The company collaborates with Korean carriers to bring these devices to mainland Korea.
The carrier introduced an on-device AI-powered ixi-O assistant earlier this month. LG Uplus will initially target its consumer base for the new AI Phone. However, the AI Assistant may be expanded to a broader audience across Korea.
Samsung could use Gauss2-based Galaxy AI on the Galaxy S25 Ultra. The company’s next-gen Generative AI model is 1.5 to 3x faster than the first-gen Gauss model. The DX division is already using Gauss2 to ramp up internal productivity.
Gauss2 offers improved performance and efficiency in simultaneously handling various data types. In the previous article, we’ve demonstrated its three distinct models that cater to different purposes: Compact, Balanced, and Supreme.
Samsung says the second-gen Gauss model offers equal or superior performance in response generation than leading open-source generative AI models. That said, the Galaxy AI will become faster and smarter with the inclusion of Gauss2.
Thanks to faster processing speed, Gauss2 enables quicker AI response generation. This way, the Galaxy user won’t have to wait much time. The company stated that it will continue to expand the reach of its AI-based services across all product lines.
That said, the Galaxy S25 Ultra is likely to boast Gauss2-based Galaxy AI. This upgrade will result in even faster processing of tasks and execution. Features like composition, image generation, and translation would benefit from Gauss2.
Earlier, we broke the news that Samsung is crafting an advanced AI technology. The Gauss2 press release indicates that the future Galaxy AI iteration could be integrated with knowledge graph technology to offer relevant results.
The Galaxy S24 series also uses Google’s Gemini Nano AI model. The fruitful collaboration offers futuristic capabilities on Galaxy devices. Samsung is rumored to use an enhanced version of Gemini Nano across the Galaxy S25 lineup.
Meanwhile, Samsung’s development may have indulged Gauss2 capabilities on the Galaxy S25 series. Integrated with new processors and optimized software, the company’s AI model would offer faster, reliable, and smarter results.