[News] Samsung Reportedly Plans Exynos Auto Exit, Prioritizes Mobile APs, Image Sensors for 2027 System LSI Turnaround
Samsung is reportedly pulling back from automotive application processors (APs) as it restructures its chip design business and shifts resources toward areas with stronger profitability and market-share potential. According to Munhwa Ilbo, sources say Samsung has decided to exit the automotive AP business it has pursued since 2018, while focusing its System LSI operations on image sensors and next-generation mobile APs as it seeks to return the division to a full-year profit next year.
Samsung previously secured agreements to supply Exynos Auto chips to Hyundai Motor in 2023 and Germany’s BMW last year. However, industry sources cited by the report say that once Samsung completes production under those existing commitments, it plans to discontinue the development and mass production of successor Exynos Auto products.
The reported move is part of a broader overhaul of Samsung Electronics’ System LSI division, which designs chips for smartphones, vehicles, robots, and other applications. The System LSI and foundry businesses have together been posting annual losses totaling trillions of won, while Munhwa Ilbo notes that a more focused strategy could help support a recovery in Samsung’s non-memory business.
The restructuring comes as System LSI has already shown signs of improvement. In its latest detailed update on the business, released with second-quarter results in July, Samsung said expanded sales of mobile SoCs and image sensors helped System LSI post record first-half revenue in 2026.
High Costs, Tough Competition Weigh on Automotive AP Business
Profitability has been a key challenge for Samsung’s automotive AP business. Unlike chips used in smartphones or home appliances, automotive processors must meet stringent safety and durability requirements because failures can have serious consequences, pushing up development costs. While suppliers can generate returns by securing stable volumes from automakers, Qualcomm effectively dominates the automotive AP market, making it difficult for Samsung to gain share, according to the report.
Samsung Shifts Focus to Image Sensors, Mobile APs
As Samsung redirects resources, image sensors and next-generation mobile APs are becoming key priorities for the System LSI division. The company secured an order last year to supply image sensors for new Apple iPhones, with mass production beginning earlier this year at Samsung’s foundry in Austin, Texas, according to Munhwa Ilbo.
Samsung is also developing the Exynos 2700 mobile AP, which is scheduled to enter mass production in the fourth quarter, with the company seeking to expand its adoption in the Galaxy S27 series due in 2027. Seoul Economic Daily notes that the chip will be produced on Samsung Foundry’s second-generation 2nm process. Greater use of in-house APs could help improve foundry utilization while reducing reliance on Qualcomm and MediaTek chips. Samsung spent KRW 7.44 trillion on mobile APs from external suppliers in the first half of 2026, according to the report.
Beyond these areas, Samsung plans to expand businesses including display driver ICs (DDIs), power management ICs (PMICs), and chip design for data centers, Munhwa Ilbo notes.
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(Photo credit: Samsung)
