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Samsung wants employees to put the 'F' in 'foundry,' not business performance

Published: 12 Mar. 2025, 13:22

WOO JI-WON
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The company logo of Samsung [NEWS1]

Samsung Electronics has reportedly instructed its foundry division to "clearly pronounce" its name in English amid ongoing struggles with underperformance and a widening deficit.

The major issue is with the letter "f," as the Korean language does not have a corresponding sound. English words that have been adopted into Korean that use the letter, like foundry, are instead pronounced with a "p" sound.

According to local media outlet TV Chosun on Monday, citing industry sources, the company’s foundry division under Device Solutions department sent an internal notice titled “Guidance on the use of the name of the Foundry division” to executives and employees in January.

The email specified that “the correct pronunciation of foundry is [faundri]” and emphasized the proper use of “p” and “f” sounds, as customers are “having confusion due to inconsistencies in the divisions’ name."

It also pointed out that the official English name of the unit is “Foundry business” and instructed employees to refrain from using its Korean name.

Correcting pronunciation is not a priority when the company should be focusing on its essence and fundamentals, said Kim Dae-jong, a professor at Sejong University's Graduate School of Business, according to TV Chosun. He added that such actions indicate that the organization is “rigid and inflexible.”

The outlet also reported that Samsung Group launched a management review of its System LSI division, which previously was in charge of the foundry business unit, in January.

Samsung Group established the diagnostic team under Samsung Global Research in November of last year to evaluate management, organizational structure and work processes to identify areas of improvement. However, it is effectively seen as an internal audit office, and the divisions undergoing such a review are widely considered underperforming or facing serious structural issues.

Some analysts believe the System LSI division’s deficits and poor performance may be similar to those of the foundry unit, according to TV Chosun.

Samsung Electronics established its foundry division in 2017, achieving early success. It captured a 19.1 percent share of the global foundry market in the first quarter of 2019. However, its market share has declined, dropping to 8.2 percent in the fourth quarter of last year.

The gap between Samsung and TSMC, the industry leader, has widened, while competitors such as Intel of the United States and Japan’s Rapidus are aggressively working to close in.

According to TV Chosun, industry analysts believe Samsung’s declining market share is not solely due to increased competition but also stems from multiple factors, including customer attrition, yield issues, slow process conversions and aggressive investments by rivals.

Securities analysts estimate that Samsung incurred an operating loss of 4 trillion won ($2.75 billion) to 5 trillion won in its system semiconductor business last year.

BY WOO JI-WON [[email protected]]