Samsung Foundry is poised for significant growth in the coming quarters, with production lines showing a substantial increase in utilization. This upswing is set to revive the company’s chip business, which has faced challenges recently.
After struggling with operating losses due to underperforming investments, Samsung is experiencing a rebound. Reports indicate that the production lines, particularly for mature nodes like 4nm and below, are showing signs of strong recovery. Although older processes contributed to financial setbacks, the annual deficit is expected to shrink considerably.
Key nodes such as 4nm, 5nm, and 8nm are seeing utilization rates soar above 50%. This uptick is largely attributed to contracts with Nintendo and advancements in the next-gen HBM4 process, utilizing the 4nm base die. Additionally, demand is being fueled by the System LSI division and the development of crypto-mining ASICs for Chinese clients.
The foundry’s financial outlook is set to improve significantly. A major boost comes from a $16.5 billion deal with Tesla for AI6 chips, promising to drive substantial order volume. Samsung is also eyeing 2nm orders from industry giants like NVIDIA and Qualcomm. With Tesla’s endorsement, Samsung has a stronger chance of attracting further interest from other major clients.
While catching up to TSMC remains a formidable task, Samsung appears to be on a promising path, positioning itself strategically for future success in the semiconductor industry.
