Samsung System LSI Division likely to see 2021 losses despite record revenues as President Yong in Park plans SoC restructuring and Exynos 2700 development
Samsung Electronics’ System LSI Division Likely to See Losses for 2021 Despite Record Q1 Revenues The System LSI unit within the consumer electronics titan is anticipated to see annual operating losses although it set records with Q1 Revenues. Chosun published that, President Yong in Park, head of the System LSI unit, addressed his division’s team members to detail the status of operations as well as a strategy for mid term restructuring.
“The image sensor business and display driver business sectors are earning enough money to offset losses incurred over long periods within the system on chip (SoC) business,” Park was quoted.
The System LSI Division is the one responsible for developing image sensors, display driver ICs, power managementchips, mobile processorapplications. As noted above, these are lucrative businesses. However, loss incurred by The systemon Chip (SoC) business unit cancels profits generated by both divisions.
“It will be difficult to get the systemon Chip business into the black in the short term,” Park told his division, but stressed, “ we are weighing all the options to restructuring and address these issues.”
The division seeks to overcome such obstacles by strengthening business ties with more clients by signing new image sensor contracts with major customers and developing customized SoC development business agreements with them. The team also plans to penetrate the AI data center siliconsupply market mid term. Samsung’s next flagship mobile processor chip, Exynos 2700, is under development at a rate that meets management’s target and eventually will be integrated into the company’s next high end mobile phones.
During the briefing, Park highlighted the human resource within his division.
“The executive management team will assume the overall responsibility in managing all the structural business issues to allow all the engineers and technical experts of the unit focus on the product development.”
He described the total design expertise of the System LSI Division as “one of the core assets of Samsung.” Such briefing of the executive by Samsung division president comes days after a briefing of Foundry Division President Jin man Han and his teams concerning issues on utilization rate of fabrication processes of their plants.
