Samsung Electronics has reportedly secured new clients for its 8nm wafer foundry services through collaboration with its Design Solution Partners (DSPs). This development is expected to significantly boost Samsung Foundry's production line utilization rates.
New HPC chip wins momentum
A news report from ET News, citing industry sources, claimed Samsung Foundry is preparing to begin mass production of a new 8nm system-on-chip (SoC) with orders obtained through Samsung's DSP network. The chip is primarily intended for high-performance computing (HPC) applications. Samsung currently maintains approximately 13 DSPs domestically and internationally.
The project adopts a one-stop turnkey model where DSPs handle design support while Samsung Foundry manages manufacturing. Design work is reportedly progressing actively, with speculation that the client may be a German company.
Switch 2 breaks TSMC tradition
Nintendo chose Samsung's 8nm process to manufacture the core Tegra SoC for its next-generation Switch 2 console, breaking from Nintendo's long-standing reliance on TSMC.
With strong initial sales of the Nintendo Switch 2, around 20 million units are expected to be produced before March 2026, which industry insiders predict will bring considerable benefits to Samsung Foundry.
Strategic pivot gains traction
Samsung has also landed major HPC and server chip orders from companies such as IBM, which turned to Samsung Foundry's 5nm process for its Telum II processor and Spyre AI accelerator, announced at Hot Chips 2024. These collaborations reinforce Samsung's credentials in the HPC segment and support its broader strategic pivot toward higher-value platforms.
Samsung plans to leverage mature and yield-stable 4nm, 5nm, and 8nm processes to drive up wafer fabrication utilization rates. While working to improve yields at the cutting-edge 2nm node, Samsung is accepting orders for 4nm, 5nm, and 8nm nodes to enhance overall profitability.
DSP partnerships prove crucial
DSPs play a crucial role in Samsung's 4nm, 5nm, and 8nm process collaborations. These partners actively develop clients, connecting domestic South Korean market demands and serving as vital bridges between Samsung Foundry and overseas clients. The increasingly popular turnkey model—where DSPs provide design support and Samsung Foundry handles production—is strengthening Samsung Foundry's ecosystem competitiveness.
Industry experts in South Korea generally hold an optimistic view of ongoing results from Samsung and DSP cooperation on 4nm, 5nm, and 8nm processes. Sources indicate that Samsung DSPs are currently negotiating with several international clients. Once orders are confirmed, this will boost DSP revenues and become a significant driver for improving Samsung Foundry's production line utilization.
Article edited by Jerry Chen
