Samsung may spin off its chip business as standalone company

Samsung may spin off its chip-making business as part of a company-wide restructuring, claims a new report.

The move would be a response to Samsung’s loss of Apple’s A-series chip orders to rival chipmaker TSMC for the iPhone 7 and, potentially, future iOS chips as well.

The reorganization would allow Samsung to regroup and refocus its efforts on either winning back Apple or moving on without one of its most important clients.

News that Samsung was considering splitting itself into two separate companies was noted last month, as the result of intense pressure from shareholders.

The South Korean tech giant has noted that it will carry out an independent review to look at the implications of such a massive move, although in a statement it noted that such a review “does not indicate the management or the board’s intention one way or another.”

2016 hasn’t been a great year for Apple. In addition to the loss of Apple as an A-series chip customer, Samsung also suffered a costly recall of its disastrous Galaxy Note 7 smartphone and, soon after, a recall of 2.8 million washing machines in the U.S. after one unfortunate customer suffered a broken jaw when the top of their unit blew off.

Previously, Samsung suggested that the investigation concerning splitting its company will take at least six months, which means we won’t know the conclusions until roughly April 2017 at the earliest.

Source: Business Korea