Recently, The Korea Economic Daily reported that Samsung Electronics has been closely reviewing its chip design and foundry businesses and is considering a potential restructuring due to ongoing struggles. This concern is also reflected in its hiring strategy. As noted by Korean media outlet NewsPim, Samsung Electronics has begun its first-half open recruitment but has decided not to hire new employees for its System Semiconductor division.
The report states that although industry experts believe Samsung will continue to secure talent through experienced hires and other means, the company will not be recruiting new employees for its Foundry Business Unit and System LSI Business Unit.
Market estimates, as highlighted in the report, indicate that these two divisions recorded a combined deficit of approximately 5 trillion KRW last year and are projected to incur another 4 trillion KRW in losses this year.
A report from Business Korea highlights that Samsung Electronics, the largest affiliate of the group, has expanded its domestic workforce by more than 24%—from 103,011 employees in 2018 to 128,169 in the first half of 2024.
Samsung Is Reportedly Considering Halting Investments at Pyeongtaek Plant in Korea and Taylor Plant in the U.S.
Meanwhile, according to The Korea Economic Daily, sources indicate that Samsung is assessing the feasibility of suspending investments in its Pyeongtaek plant in Korea and Taylor plant in the U.S. The company’s USD 37 billion US fab in Taylor, Texas, has been delayed, with production now set for 2026 instead of its original timeline, the report adds.
As highlighted by The Korea Economic Daily, with TSMC recently unveiling a USD 100 billion expansion plan in the U.S., analysts cited in the report express growing concerns over whether Samsung can secure enough major clients to justify its investment in the U.S..
According to TrendForce, in the 4Q24 foundry revenue rankings, Samsung Foundry ranked second but saw a 1.4% QoQ decline in revenue, falling to USD 3.26 billion and capturing just an 8.1% market share. Meanwhile, TSMC maintained its dominant position with a commanding 67% market share.
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(Photo credit: Samsung)
Please note that this article cites information from NewsPim, Business Korea, and The Korea Economic Daily.
