Memory manufacturers such as Samsung and SK hynix are enjoying lucrative earnings thanks to the DRAM shortage, with the Korean titan’s estimated operating profit reaching $73 billion in 2026, but when it comes to boosting the profitability of its entire foundry division, that’s another story. Sure, the company has made progress by announcing the world’s first 2nm GAA chipset, the Exynos 2600, but experts strongly believe that additional effort from Samsung’s end is required if it wants to compete with TSMC.
Increasing its profitability can only come from the market situation and not from Samsung’s own competitiveness, says an expert, who also states that the company is lagging severely in three areas
Estimates from United Daily News that were shared by the World Semiconductor Trade Statistics (WSTS) state that memory revenue is expected to grow by 27.8 percent in 2025, making it the second largest category in the entire industry. The Deputy Director of DigiTimes, Tsai Cho-shao, has commented that Samsung will benefit from the DRAM price increases, but this profiteering is only due to the shift in market response for this component and not because of the Korean giant’s competitiveness.
The Deputy Director also points out three areas where Samsung is struggling, which are lagging behind SK hynix in HBM production, its wafer foundry business, and mobile products. The report mentions that while the firm has adequate resources to improve its current position, determining which area to invest in is a challenge. Samsung has previously been reported to target 2027 for the profitability of its foundry business, and it is slowly making progress with its 2nm GAA process.
When it was first reported that Samsung had commenced the mass production of its Exynos 2600 on its next-generation manufacturing process, the yields were at an estimated 50 percent, with improvements targeted at 70 percent. So far, the company has not just signed a multi-billion-dollar deal with Tesla, but has also begun fulfilling orders for two Chinese cryptocurrency equipment manufacturers.
Due to the DRAM shortage, Samsung is also wrestling with allegations of corruption as it is investigating employees for taking bribes to divert memory supplies, making it one of the many trade-offs of being one of the few manufacturers on the planet. We can revisit Samsung’s position after a few months, so we can gauge its foundry business, for we can all agree that it will take a few years to be in the same conversation as TSMC.
News Source: United Daily News
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.
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