Huo Xing Finance reports that on August 3, according to the Chosun Ilbo, Samsung Electronics’ foundry business is expected to achieve 100% capacity utilization in the second half of this year, ending its prolonged downturn and potentially reaching a profitability turning point. Currently, Samsung’s foundry capacity utilization stands at approximately 70%-80%, driven by demand for HBM4 substrate chips, growing demand from major U.S. tech companies, and increased orders for 2-nanometer processes; industry analysts believe the target for full capacity operation is largely achievable. Previously, Samsung’s foundry business suffered sustained losses due to prolonged capacity utilization below 50% for mature nodes such as 4nm and 5nm, which intensified fixed-cost pressures. With the resurgence in demand for advanced nodes—particularly orders related to AI and high-performance computing (HPC)—rising capacity utilization is expected to become a key factor in improving profitability. Samsung is currently expanding its customer base, with ongoing discussions with clients including Qualcomm, AMD, Google, and Tesla. Meanwhile, improving yield rates for the 2-nanometer process remains a critical variable; current market estimates place Samsung’s 2nm yield at around 60%, and whether it can rise above 70% will determine whether large clients commit to mass production orders. Samsung expects advanced node revenue to account for over 50% of total revenue this year, with AI and HPC-related business increasing from approximately the latter half of last year’s 10% to more than 30%. The company also plans to advance construction of its Taylor, Texas facility and prepare for future expansion of its 1.4-nanometer process. Samsung previously stated during its earnings call that capacity utilization has improved across all process nodes compared to last year, with advanced nodes below 8nm nearing maximum levels. It also expects 2nm project orders this year to more than triple year-over-year. Market analysts believe Samsung’s non-memory chip business could turn profitable as early as Q3 or no later than Q4 this year.
Samsung Foundry aims to achieve full capacity utilization by 2026 and target a profit turnaround.
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Summary
Samsung Foundry aims for 100% capacity utilization by late 2026, signaling a potential profit turnaround. Current utilization stands at 70%-80%, driven by demand for HBM4, U.S. orders, and 2-nanometer production. The semiconductor sector’s Fear & Greed Index is shifting as yield rates improve. Samsung expects advanced process revenue to exceed 50% this year, with AI and HPC business rising to over 30%. Ongoing discussions are underway with Qualcomm, AMD, Google, and Tesla. Altcoins to watch may respond to broader technology and manufacturing trends. The Texas Taylor facility is under construction for future 1.4-nanometer production.
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