Samsung Plans to Exit Automotive AP Business

According to industry sources, Samsung Electronics’ System LSI division plans to exit the automotive application processor (AP) business as part of a major restructuring, shifting its focus to higher-margin products such as image sensors and mobile system-on-chips (SoCs). After years of losses in its System LSI and foundry businesses, Samsung is reportedly pursuing a strategy of selective investment and resource concentration to improve the profitability of its non-memory semiconductor operations.

Samsung’s Device Solutions (DS) division has reportedly decided to discontinue its in-house Exynos Auto automotive processor lineup. Introduced in 2018, Exynos Auto is a system-on-chip designed to handle core computing tasks in vehicles and has been positioned as a key component for software-defined vehicles (SDVs) and autonomous driving technologies.

Samsung has made some progress in the automotive semiconductor market. A report in 2023 indicated that the company had signed a supply agreement with Hyundai Motor for its Exynos Auto V920 chip. Reports in late 2025 also indicated that Samsung’s System LSI division had begun supplying the Exynos Auto V720, manufactured using a 5nm process, to BMW.

However, profitability has remained a major challenge for Samsung’s automotive AP business. Industry sources estimate that developing each automotive application processor costs more than 100 billion Korean won (approximately US$74.8 million), while the selling price per chip is estimated at just US$20 to US$40. Securing long-term supply agreements with major automakers is therefore essential to recovering development costs and achieving sustainable profitability.

Qualcomm’s strong position in the automotive application processor market has also made it difficult for Samsung to expand its market share. According to people familiar with the matter, Samsung plans to fulfill its existing Exynos Auto production commitments with Hyundai Motor and BMW but will not develop or mass-produce successor products.

Reports from late 2025 indicated that Samsung had postponed mass production of the Exynos Auto V920 until 2026, while effectively suspending development of its next-generation successor. These setbacks appear to have prompted the company to reassess its automotive AP strategy and accelerate its shift toward more selective investment in semiconductor products with stronger profit potential.

Following its planned exit from the automotive AP business, Samsung’s System LSI division intends to concentrate its resources on image sensors and next-generation mobile application processors, with a target of achieving profitability in 2027.

The division is currently developing the Exynos 2700 mobile processor, with mass production expected to begin in the fourth quarter of 2026. Samsung also plans to increase the chip’s adoption rate in the Galaxy S27 series, which is expected to launch in 2027. In addition, the company aims to expand into other semiconductor markets, including display driver ICs (DDIs), power management ICs (PMICs), and data center chip design, as it works to strengthen the competitiveness and profitability of its non-memory semiconductor business.