Core Viewpoint - Samsung Electronics is undergoing a thorough review of its system chip and foundry businesses, indicating a potential restructuring due to competitive pressures from TSMC and challenges in its non-memory semiconductor strategy [1][2][4]. Group 1: Business Review and Strategy - Samsung's internal audit office, established in November, is conducting a significant review of its system semiconductor strategy, which was designated as a future growth engine by Chairman Lee Jae-Yong in 2019 [2][4]. - The review is focused on the system LSI department and the foundry business, aiming to assess challenges and identify strategies to enhance competitiveness [4][11]. - The system LSI department is facing difficulties in expanding its customer base beyond its own divisions, as highlighted by the failure of the Exynos 2500 processor to feature in the Galaxy S25 smartphone [6][9]. Group 2: Market Position and Competition - Samsung's image sensor market share is below 20%, trailing behind Sony, indicating a need for improvement in this segment [3]. - In the foundry business, Samsung's market contribution is 8.2% as of Q4 2024, significantly lower than TSMC's 67.1%, prompting a deeper revenue review [4][7]. - The company is struggling to attract sufficient foundry clients, with operational losses exceeding 2 trillion KRW (approximately 1.4 billion USD) reported for Q4 2024 [7]. Group 3: Future Plans and Adjustments - Samsung is considering transferring the Exynos SoC business from the system LSI department to the mobile experience department to align better with its smartphone strategy [9]. - The company plans to evaluate the suspension of investments in its Pyeongtaek and Taylor factories and aims to improve product yield in advanced nodes while securing AI chip manufacturing contracts [11]. - A new team has been established within the system LSI to ensure the supply of image sensors to Apple next year, indicating a focus on key partnerships [10].