News continues to pour in about the delicate situation at Samsung Foundry, the company’s semiconductor production division. Things seemed to be improving following the good performance of the Exynos 2400 chip. However, recent developments revealed severe hurdles to overcome in order to get back on track. Interviews with Samsung employees indicate that the company is currently facing a “crisis.”
Samsung Foundry and its low yield rate issues
Samsung Foundry’s main problems stem from the low yield rate of its 3nm GAA wafers. The company had hoped to make the Eynos 2500 chip an attractive, powerful, and efficient SoC thanks to the new process. However, its factories have not been up to the task. Recent reports claim that only about 25–30 chips out of every 100 produced are usable. Meanwhile, at their worst, wafers have shown a yield rate of just 10%.
Samsung is reportedly trying to improve the yield rate of its 3nm GAA wafers before deciding which chip to use in the Galaxy S25 series. Given the severity of the situation, it is highly likely that Samsung will have to replace its Exynos 2500 chip with the more expensive (yet powerful) Snapdragon 8 Elite. However, the South Korean giant is keeping the faith and is still testing the Exynos 2500 in case they manage to turn things around at the last minute.
Samsung employees and former employees see a crisis in the company
Damnangyi, a YouTuber and former Samsung employee, shared a video with views from people related to the company. The opinions are about the current situation and the potential causes. First, seven former employees and 24 current employees claim that Samsung is in crisis. Most of them believe that Samsung’s current pace of innovation is slow. This would be a direct consequence of a lack of vision on the part of the board of directors. Some have even expressed concerns about the management’s treatment of employees.
Damnangyi currently works at Qualcomm in the US. However, his time at Samsung was enough to know what was going on internally. Plus, the situation is no secret, as representatives apologized to investors this month for the disappointing financial results and lack of innovation.
The company will seek to change the situation with more innovation
In its official apology, Samsung Electronics teased its strategy to try to turn things around. The company mentioned that it will bet more on innovation and on the development of long-term solutions. Only time will tell if Samsung manages to get back on track or if the internal crisis worsens. Recently, Samsung Mobile launched the Galaxy Z Fold Special Edition in an attempt to compete with the ultra-thin foldables of Chinese brands.
