The foundry business is largely dominated by TSMC, but Samsung has set an ambitious target for 2027, aiming to turn around this specific division and make it profitable within two years. The foundation has already been set by ramping up 2nm GAA production, along with establishing long-term business relationships with lucrative customers.
Since 2022, Samsung’s foundry has been operating at a loss, and though the company does not provide specifics, industry estimates claim that every quarter, the company bleeds up to $1.36 billion
A senior industry source familiar with Samsung’s plans informed ETNews that the Korean giant has ‘set a goal of achieving a 20% market share (based on sales) by that date (2027).’ Since the foundry business is an order-based one, Samsung will be required to purchase the necessary paraphernalia in advance, which is why the manufacturer has established a two-year business plan.
Since 2022, Samsung has been operating at a loss, and while the company does not share specific figures, industry sources estimate that the company is hemorrhaging between 1 trillion ($0.68 billion) and 2 trillion won ($1.36 billion) each quarter. Despite investing heavily in next-generation manufacturing processes, Samsung has struggled to accumulate orders, likely due to its poor reputation in the industry.
However, the company is taking the steps in the right direction, with its $16.5 billion deal with Tesla considered a major break for the Korean conglomerate. Furthermore, Samsung appears to be laser-focused on its 2nm GAA process, which is being utilized for the Exynos 2600. This SoC is expected to be found in the base Galaxy S26 and Galaxy S26 Plus that are slated to launch in February.
The company also provided Snapdragon 8 Elite Gen 5 samples to Qualcomm for evaluation, though it is likely that the chipset maker will explore placing orders with Samsung for next year’s Snapdragon 8 Elite Gen 6 and Snapdragon 8 Elite Gen 6 Pro instead of its current flagship silicon. Other ways to boost profitability are increasing the utilization rate at its Taylor plant in Texas.
This facility currently manufactures mature nodes ranging from 14nm to 65nm, but there is positive news on this front. ASML was earlier reported to form a team to set up EUV machinery at the Taylor plant, so Samsung is well prepared for operations that are scheduled to commence in 2026. As for next-generation processes, the company previously reported having completed the basic design of its second-generation 2nm GAA node, but its current focus lies on improving existing 2nm GAA yields.
News Source: ETNews
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
Follow Wccftech on Google to get more of our news coverage in your feeds.
