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Samsung Electronics is navigating a challenging period in its semiconductor design business, as highlighted by Park Yong-in, president and head of the System LSI Business Unit. In a recent email to employees, Park emphasized the need to “cultivate roots and withstand storms,” urging staff to embrace responsibility and loyalty to the company. This call to action comes as Samsung faces the significant task of mass-producing two flagship products simultaneously, a situation exacerbated by delays in developing the latest mobile application processor (AP).
The company had initially aimed to integrate its latest mobile AP, the Exynos 2500, into the Galaxy S25 series released earlier this year. However, difficulties in stabilizing yield rates thwarted these plans, leading to the full integration of competitor Qualcomm’s products into the Galaxy S25. This setback has prompted Samsung’s System LSI Business Unit to deploy elite personnel to develop the next-generation product for both the Exynos 2500 and the upcoming Galaxy S26.
In his communication, Park Yong-in candidly addressed the challenges facing the System on Chip (SoC) business, stating, “We are currently in a situation where we have to develop two flagship products simultaneously.” Despite these hurdles, Park reported positive developments within the business unit, noting that the sensor business has turned profitable and that overall profits have exceeded expectations. However, he cautioned that this success might be temporary, predicting that the business unit will experience monthly fluctuations between profit and loss.
Park’s leadership has been under scrutiny, especially after retaining his position amid leadership changes in Samsung’s memory and foundry businesses at the end of last year. His top priority remains restoring SoC competitiveness and ensuring the stable mass production of next-generation Exynos products to reclaim the Galaxy S series, Samsung’s largest client. Additionally, Park aims to expand the product portfolio from mid-range to cutting-edge offerings to counter MediaTek and narrow the quality gap with Qualcomm.
In his email, Park drew inspiration from the novel “The Little Prince,” quoting a passage about the importance of investing time and care into projects. He likened the current efforts to laying the groundwork and preparing buds, expressing optimism that “if we water them in time and withstand storms, we can bloom beautiful flowers filled with sunshine in the future.” He encouraged employees to continue creating a positive image, stating, “The start is good. Let’s continue to create a positive image.”
As Samsung Electronics navigates these challenges, the company’s ability to stabilize its semiconductor production and enhance its competitive edge in the mobile AP market will be crucial. The outcome of these efforts will likely shape the future trajectory of Samsung’s System LSI Business Unit and its position in the global semiconductor industry.