Samsung May Exit 8-Inch Wafer Foundry Business by 2030

According to industry sources, Samsung Electronics has informed its 8-inch wafer foundry customers that it plans to completely shut down its 8-inch wafer production lines by the end of 2030. The company is reportedly preparing to gradually phase out its 8-inch foundry operations and redirect its workforce and equipment investments toward advanced 12-inch wafer manufacturing processes.

Reports indicate that Samsung has decided to fully exit the 8-inch wafer foundry business and has notified customers of its withdrawal timeline. The decision is putting pressure on South Korean IC design companies that have relied on Samsung for long-term contract manufacturing, forcing them to urgently seek alternative production capacity.

Previously, Samsung had only indicated that it would gradually reduce the scale of its 8-inch wafer production. The latest announcement marks the first time the company has reportedly established a specific timeline for a complete withdrawal from the segment.

Samsung currently operates three 8-inch wafer fabrication facilities in Giheung, South Korea, identified as the S6, S7, and S8 fabs. The company had initially planned to shut down the S7 facility this year while keeping the other two operational. Its existing 8-inch foundry processes cover mature nodes of 65nm, 70nm, 90nm, 130nm, and 180nm. These processes are primarily used to manufacture various system semiconductors, including display driver ICs (DDIs), power management ICs (PMICs), microcontrollers (MCUs), and image sensors.

During its first-quarter earnings conference call, Kang Seok-chae, vice president of Samsung's foundry business, said the company would gradually discontinue 8-inch production lines for power semiconductors, display driver ICs (DDIs), and image sensors. Samsung Foundry has also reportedly stopped accepting new product orders for 8-inch manufacturing starting this year.

Apart from Samsung Foundry, South Korea's major 8-inch wafer foundries include DB HiTek and SK keyfoundry. However, both companies have already allocated a substantial portion of their production capacity to existing customers, making it difficult for them to absorb additional orders transferred from Samsung.

Migrating production to 12-inch wafer processes is also challenging. Such a transition could significantly increase manufacturing costs, while existing semiconductor products would require redesigning and requalification before moving to the new production platform.

South Korean industry representatives are reportedly hoping Samsung will delay its 8-inch production shutdown schedule and have called on the government to help coordinate the transition. However, another industry source noted that Samsung has given customers approximately four years to prepare, making it difficult to characterize the decision as a unilateral measure.

The transition remains complicated by limited alternative manufacturing capacity. Domestic South Korean foundries are already operating at full capacity, while shifting production to mainland China is not considered a viable option. Foundries in Taiwan and the United States are also reportedly facing capacity constraints, leaving affected IC design companies with limited alternatives as Samsung moves toward its planned exit from 8-inch wafer manufacturing.