Samsung Foundry Share Slips Below 7%, New Orders in Sight

Samsung's foundry business may be showing early signs of recovery as it moves closer to securing advanced-node customers.

According to industry reports, Samsung Electronics is in talks with AMD over potential 2nm foundry orders, aiming to narrow the gap with market leader TSMC. So far, Samsung has struggled to break into the top tier of pure-play foundries, as major chip designers—including Apple, AMD, and even Tesla—have long favored TSMC for leading-edge manufacturing.

However, with TSMC's capacity running near full utilization, Samsung is seeking to capitalize on the growing demand for advanced process nodes. Following earlier engagements with Tesla and Apple, AMD is now reportedly discussing cooperation with Samsung on its 2nm SF2 process. The two companies are also said to be working together on AMD's next-generation EPYC "Venice" CPU platform.

Industry analysts believe this potential partnership could help Samsung accelerate its progress toward catching up with TSMC, while also improving the profitability outlook of its foundry operations.

Within Samsung's Device Solutions (DS) division, the foundry business is reportedly reviewing a plan to manufacture AMD-designed chips using its internally developed second-generation 2nm process, known as SF2P. To support this effort, Samsung plans to begin prototype production using multi-project wafer (MPW) technology, with both parties aiming to finalize the agreement around January next year.

Samsung's foundry unit reportedly recorded losses of around KRW 4 trillion in the first half of this year. However, performance has improved following the acquisition of high-profile advanced-node projects from major technology companies. A deal with AMD could further strengthen this recovery momentum.

Market data from TrendForce highlights the competitive pressure Samsung continues to face. TSMC's global foundry market share rose to a record 71% in the third quarter, reinforcing its dominant position. Samsung, while still ranked second, saw its share slip by 0.5 percentage points to 6.8%, widening the gap between the two rivals.

An industry source noted that persistent capacity constraints are making it increasingly difficult for TSMC to absorb new orders. At the same time, rising production costs at TSMC are enhancing Samsung's appeal as an alternative advanced-node manufacturing option for chip designers seeking diversification.