A recent report from Korea indicates that Samsung is considering a significant reorganization of its semiconductor operations. The company may transfer the responsibility for designing Exynos application processors from its LSI division to the mobile experience (MX) division, which oversees the development of Galaxy smartphones and other devices. This strategic move could lead to tighter integration between hardware and software, similar to Apple's approach with its A-series chips for iPhones and iPads. Such a change would allow Samsung to design chips more specifically tailored to the needs of its mobile products.

However, this potential shift faces substantial internal debate within Samsung. The LSI division currently operates as an independent entity, even referring to the MX division as a client during earnings calls. This autonomy has allowed the LSI division to supply Exynos chips to external manufacturers like vivo and Meizu in the past. If the MX division takes over chip design, it might become challenging for Samsung to continue supplying chips to other smartphone makers, potentially impacting partnerships such as the one with Google for developing Tensor chips. Additionally, concerns about financial performance arise, especially given recent losses in the LSI and Exynos units. The upcoming Exynos 2600 chip could be crucial in determining the future direction of the company’s chip strategy.

Despite these challenges, bringing chip design closer to the mobile business could offer several advantages. Closer collaboration between the two divisions could result in more optimized and cost-effective smartphones, benefiting consumers. However, the manufacturing process remains a critical factor. Historically, Samsung Foundry's production capabilities have lagged behind competitors like TSMC, leading to concerns about efficiency and performance. Therefore, while this restructuring could enhance the competitiveness of Exynos chips, the ultimate success will depend on overcoming existing manufacturing hurdles and aligning with the precise demands of Samsung's mobile devices.