Samsung's foundry division has been bleeding billions of dollars every year since 2022. It just couldn't bring in the orders needed to generate a return on the massive investments made in chipmaking facilities.
That might change by Q3 2026, a quarter ahead of previous expectations, as the foundry division is now expected to turn a profit in the third quarter of this year.
Foundry may finally be turning over a new leaf
A report out of South Korea highlights that internal projections previously had Samsung Foundry returning to profitability in Q4 2026. The projections have now favorably shifted to Q3 2026.
The improved production volumes on the 2nm process nodes as well as the base die used in HBM4 memory production will provide the boost required for a return to profitability. The foundry division has also won major orders recently, including a $16.5 billion advanced chipmaking order from Tesla.
The company also expects a significant uptick in chipmaking orders this year. It internally projects a 130% increase in 2nm-related orders compared to last year. Other major clients may include Nintendo, Apple, and NVIDIA.
Samsung has been able to considerably improve the yields of its 2nm process which has helped its profitability outlook. The yields are now said to be more than 60% as of Q1 2026, within reach of the 70% level that's typically viewed as the benchmark for favorable mass production economics.
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