Samsung System LSI is reportedly scaling back its in-house automotive AP business to focus on higher-margin image sensors and mobile SoCs, as it seeks to improve profitability.
Samsung Electronics’ System LSI division is reportedly planning to retreat from its in-house automotive application processor (AP) business as part of a broader restructuring focused on improving profitability in its non-memory semiconductor operations.
The division is expected to redirect resources towards higher-margin semiconductor businesses, particularly image sensors and mobile system-on-chip (SoC) products. The reported strategy comes after years of losses at System LSI and Samsung’s foundry operations, according to DIGITIMES.
System LSI has been involved in automotive semiconductors alongside businesses spanning mobile processors, image sensors, display ICs, security solutions, and power-management ICs. Its portfolio includes Exynos processors and ISOCELL image sensors, making mobile SoCs and image sensors key areas for the division.
Samsung had already indicated plans to strengthen the competitiveness of its premium Exynos SoCs and expand differentiated image-sensor technologies. In its 2025 results, the company said it would focus on these areas in 2026.
However, the reported retreat from in-house automotive AP development does not mean Samsung is exiting automotive semiconductors. Samsung Foundry continues to manufacture automotive chips, including processors for infotainment and ADAS/AD, as well as power-management ICs, battery-management ICs, and MCUs.
The restructuring therefore points to a sharper semiconductor portfolio strategy, with Samsung System LSI prioritising businesses with stronger margins and established market positions.
