Samsung may be reworking its chip production strategy. Reports suggest the company is considering outsourcing the production of its Exynos chips to Taiwan Semiconductor Manufacturing Company (TSMC).
This potential change in manufacturing plans could influence the tech industry in various ways. BruntWork, a top outsourcing firm, shares how outsourcing is becoming a practical solution for any production needs.
Exynos troubles and the TSMC partnership
Samsung’s Exynos chips, which power many smartphones, have faced production roadblocks, particularly with advanced technologies like the 3nm process. These difficulties have led to lower production success rates and performance concerns. As a result, Samsung has been relying more on Qualcomm’s Snapdragon chips for its high-end devices, sparking questions about its future in the semiconductor market.
Turning to TSMC, a global leader in semiconductor production, could give Samsung access to better manufacturing processes and improved results. This collaboration might help Samsung overcome production hurdles and breathe new life into its Exynos line.
Winston Ong, CEO of BruntWork, sees this decision as a reflection of how outsourcing can help businesses handle tough problems.
‘Samsung’s move shows how working with specialised partners can improve outcomes. It brings in the right resources to solve production bottlenecks, much like a social media virtual assistant helps businesses streamline their digital presence and overcome engagement challenges,’ he says.
Semiconductor industry trends
The semiconductor sector is on a growth streak, with an estimated annual growth rate of 10.1% through 2028. Technologies like artificial intelligence (AI), 5G, and the Internet of Things (IoT) fuel this surge, though the industry also faces hurdles like supply chain issues and geopolitical tensions.
A potential partnership between Samsung and TSMC could offer a practical response to these pressures, showing the importance of collaboration in staying ahead. In an interconnected tech world, these partnerships increasingly drive progress and adaptability.
What BruntWork has learned about outsourcing
Samsung’s situation mirrors trends across industries. BruntWork, a global outsourcing leader, has observed changes in how companies view outsourcing. Many now see it as a strategy for growth rather than just a cost-saving measure.
‘Smart outsourcing allows companies to focus on their strengths while working with outside specialists,’ Ong explains. Accessing global talent, such as when companies hire virtual assistants, allows organisations like Samsung to cut costs while driving progress faster.
BruntWork reports that businesses can save up to 60% through outsourcing while improving efficiency. This demonstrates the value of aligning outsourcing decisions with long-term goals to achieve tangible benefits.
Impact on tech manufacturing
If Samsung partners with TSMC, it could lead to changes across the tech manufacturing industry. Other companies may adopt similar models, fostering a more distributed and specialised supply network.
This may encourage more businesses to design chips while leaving production to trusted manufacturing partners. While this enables creativity and efficient production, success requires strong partnerships and clear communication.
Samsung’s potential partnership with TSMC could influence future strategies in tech manufacturing. This decision shows how thoughtful collaboration and specialisation can shape the direction of technology.
