Samsung adjusts its auto market development strategy: it has dismantled its automotive semiconductor business unit

According to South Korean media reports, Samsung Electronics has adjusted its automotive semiconductor business unit, dismantled the parts platform business team, and apportioned the responsibilities of the department to other departments.

Previously, the Samsung components platform business team, part of the device Solutions (DS) department, was established at the end of 2017 to be responsible for the marketing and operation of automotive AP (application processor) and memory technologies.

According to the report, the AP developer who used to be in charge of the business team moved to the Custom SOC business team, while the person in charge of the car memory moved to the company's memory business, and now the former members of the business team are continuing to do the same work in their respective departments.

The dismantling of the parts platform business team shows that Samsung's automotive semiconductor business strategy is changing, mainly because for Samsung, the auto market brings small sales and operating profits.

In addition, the auto industry needs to be ploughed for many years to see results, which gives Samsung not enough incentive to stick to this field.

As a result, Samsung Electronics is expected to continue to respond to the automotive market, looking for new products with high added value and expanding its automotive semiconductor business to different sectors to ensure "efficiency" and "profit margins" at the same time.

So far, Samsung has adopted a "choose & focus" strategy in the automotive industry, providing AP, for infotainment and automotive high-performance memory to leading automakers such as Audi, rather than covering entire automotive semiconductors, to seek higher added value.