Samsung's chip manufacturing business, Samsung Foundry, has been around for many years. However, it hasn't been the first choice for many chip designers, which have instead preferred TSMC for offering more advanced nodes, higher manufacturing yields, and stronger execution in advanced packaging. That, however, started to change last year.
Samsung became the first foundry to commercialize a 2nm process just as demand for AI chips began surging. With TSMC's leading-edge capacity heavily booked out and companies scrambling to secure advanced chip production, major firms such as AMD, Google, Qualcomm, and Tesla have started taking their business to the South Korean tech giant.
As a result, Samsung Foundry’s fab utilization has already climbed to the 70–80% range. Now, the firm expects the utilization of its facilities to reach 100% in the second half of the year as demand for 2nm manufacturing, AI accelerators, and HBM-related production continues to soar.
According to a new report from Chosun, Samsung’s foundry business aims to achieve 100% utilisation of its facilities. Samsung’s advanced foundry lines are expected to operate at full capacity in the second half of the year, driven by rising orders for 2nm chips, AI accelerators, and HBM base dies. Utilization is also improving across nodes, with leading-edge processes at 8nm and below already at or near maximum levels and stronger demand supporting mature nodes used in AI and automotive applications.
This turnaround marks a significant shift for Samsung Foundry, which has struggled with low utilization and multi-year losses while trailing TSMC in securing leading-edge customers. As more chip designers adopt a multi-foundry strategy to reduce supply chain risks and cope with limited capacity at TSMC, Samsung appears to be emerging as a key beneficiary. While further improvement in 2nm yields will be important for converting discussions into large-scale production, the rising utilization is strengthening the company’s prospects for a return to profitability.
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