Samsung Foundry Targets Full Capacity in H2 2026

According to industry reports, Samsung Electronics’ foundry business is expected to achieve 100% capacity utilization in the second half of 2026. Currently, Samsung’s foundry production lines are operating at approximately 70% to 80% utilization, but rising demand for HBM4-related logic base dies and increasing orders from major U.S. technology companies are expected to further improve capacity efficiency.

Samsung’s foundry division has faced prolonged losses in recent years due to insufficient utilization of advanced process capacity. Since 2024, utilization rates for some 4nm and 5nm production lines reportedly dropped below 50%, while heavy equipment investments and high fixed costs pressured profitability. With utilization rates recovering, Samsung’s foundry business is expected to see improved financial performance.

The recent recovery is largely driven by growing demand for artificial intelligence (AI) infrastructure. HBM4 memory requires advanced process technology for manufacturing its logic base dies, creating additional foundry opportunities for Samsung. Meanwhile, increasing demand for AI and high-performance computing (HPC) applications from U.S. technology companies is accelerating the expansion of advanced semiconductor manufacturing capacity.

Samsung is also strengthening its advanced process customer portfolio. Industry sources indicate that the number of Samsung’s 2nm projects has more than doubled compared with last year, with multiple projects from cloud service providers, AI companies, and HPC customers currently underway. In addition, projects from major customers such as Broadcom are expected to become important growth drivers for Samsung Foundry.

However, improving 2nm process yield remains a critical factor for Samsung’s long-term profitability. The current yield rate of Samsung’s 2nm process is estimated to be around 60%, and industry observers believe it needs to improve to approximately 70% to support large-scale mass production. As yield performance continues to advance, Samsung could secure more high-value semiconductor manufacturing contracts.

During its recent earnings conference call, Samsung stated that capacity utilization has improved across all process nodes compared with last year. Advanced nodes below 8nm have reached relatively high utilization levels, and the company plans to increase sales by focusing on high-growth products. Samsung expects the number of 2nm projects in 2026 to more than triple compared with the previous year and believes its foundry business will return to profitability in the near term.

From a business mix perspective, Samsung expects advanced process revenue to account for more than 50% of total foundry revenue this year. AI and HPC-related businesses are also projected to increase their contribution from approximately 10%–20% last year to more than 30%.

At the same time, Samsung continues to expand its U.S. semiconductor manufacturing footprint. The company is advancing construction of its Taylor, Texas semiconductor facility, with the first fab expected to begin operations this year and the second fab scheduled to start construction within the year, targeting mass production by 2030.

Driven by AI infrastructure growth, rising HBM demand, and expanding advanced-node orders, Samsung Foundry is aiming to strengthen its competitive position in the global semiconductor manufacturing market while accelerating its transition toward sustainable profitability.