Samsung Electronics' foundry (semiconductor contract manufacturing) business is seeing rapid performance improvements.
Samsung Electronics announced on the 30th that it plans to break ground on the Taylor Fab 2 plant in Texas, U.S., by the end of this year and begin operations at Yangsan in 2030.
During its second-quarter earnings announcement held today, Samsung Electronics stated, "The current pace of capacity expansion for leading-edge process lines cannot keep up with demand." It added, "We are preparing to commence construction on Taylor Fab 2 in the U.S. by year-end, with Yangsan operations targeted for 2030."
Samsung Electronics is preparing to start operations at Taylor Fab 1 by the end of this year and plans to gradually expand its 2nm capacity thereafter. The company explained, "Utilization rates have improved across all nodes compared to last year, particularly for leading-edge processes at 8nm and below, which have reached maximum levels through sales maximization focused on high-growth demand products."
It further stated, "As customer inquiries regarding the 1.4nm process increase, we are currently reviewing additional fab acquisition. Mature processes are transitioning to high-margin leading-edge processes, and our operational strategy is shifting toward concentrating capabilities on high-value-added specialty demand with high technical barriers."
The foundry business, which has long been Samsung Electronics' "pain point" due to persistent losses, appears poised to achieve profitability soon. Samsung Electronics noted, "Improvements in utilization rates and yield, combined with price increases, are expected to drive significant profit margin improvements compared to last year, marking the start of a full recovery." Regarding the timing of profitability, the company added, "Due to the nature of the order-driven industry, it is difficult to specify an exact timeline, but we anticipate achieving profitability in the near future."
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