Samsung Electronics has started a large-scale inspection into its contract chip business division that recorded almost 1 trillion won (820 million) loss in 2014, The Herald Business reported Wednesday.

The System LSI division, part of the semiconductor unit, produces non-memory chips for mobile application processors, image sensors for cameras and TV displays.

According to the report, the inspection aims to look into the division’s investment and spending made over the past six to seven years. A company official was quoted as saying the inspection is carried out on regular basis.

The division had continued a rapid growth since securing supply deals for Apple in 2007. But it suffered severely when the iPhone maker switched the chip supplier to Taiwan’s TSMC following patent disputes with Samsung in 2012.

The division’s revenue fell to 9 trillion won in 2014 from 13 trillion won in 2013. Industry watchers estimate the loss during the period at about 1 trillion won.

The division is seeking a breakthrough more recently as it started the second-generation 14-nanometer FinFET process, which allows the chips to have 15 percent faster processing speed and consumes 15 percent less power.

The chips started to be supplied to A9 chips for the iPhone 6S last year.

By Lee Ji-yoon (jylee@heraldcorp.com)