Samsung Restructures Chip Packaging for AI-Focused Future

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Samsung’s semiconductor division has been struggling lately, recording its first operating loss in 14 years last year. The situation hasn’t improved this year, with low 3nm yields impacting chip sales and eroding foundry market share. In response, the company is exploring a significant overhaul of its semiconductor strategy. The plan includes a restructuring of its packaging processes to align with the demands of the AI era.

Samsung plans to restructure its chip packaging processes for the AI era

According to the Korean media, Samsung is exploring ways to strengthen its technological competitiveness in the advanced semiconductor packaging supply chain. The firm recently reviewed materials, parts, and equipment across all chip sub-divisions. Everything has been evaluated from the root, with big changes expected at various stages of the supply chain. Samsung may establish a new supply chain where necessary.

The changes could be so significant that the Korean behemoth might return some of the chip equipment it previously purchased under its old strategy. These tools may no longer align with its revamped approach. Samsung prioritizes “performance” at every level, and is willing to terminate existing business relationships if the need be. The firm could sign new equipment deals soon.

The ultimate goal is to diversify the supply chain by forming new partnerships and moving away from a closed chip development and packaging ecosystem. This shift is part of Samsung’s strategy to build a robust supply chain capable of meeting the growing demands of the AI era. As the AI industry continues to expand, the demand for high-bandwidth memory (HBM) chips is expected to surge exponentially.

Samsung views chip packaging as a cornerstone for regaining semiconductor competitiveness in the AI era. After all, advanced packaging solutions are critical to HBM  production. The company is working from the ground up, revisiting the foundational stages of its packaging strategy, to strengthen its position.

Written by

Sumit Adhikari

Sumit, a life-long Samsung user, is passionate about technology and has been professionally writing on tech since 2017. He’s a mathematics graduate by education and enjoys teaching basic mathematics tricks to school kids in his spare time. Sumit believes in artificial intelligence and dreams of a fully open, intelligent and connected world.

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