Samsung Electronics' foundry business is showing signs of a gradual recovery, with fab utilization expected to average in the low-60% range in the first half of 2026, up from the 50% range in the second half of 2025, according to a report by ZDNet Korea.
The report said the improvement reflects increased wafer starts across both advanced and core process nodes, helping narrow losses compared with a year earlier. The higher utilization represents an increase of about 10% from the previous half, it said.
Losses ease as process mix shifts toward 4nm and 8nm
The foundry unit's profitability had been under pressure after struggling to secure major customers at leading-edge nodes such as 3nm. Losses at Samsung's non-memory semiconductor operations totaled about KRW2 trillion (US$1.36 billion) in the first and second quarters of 2024.
Those losses narrowed to around KRW1 trillion in the third and fourth quarters of 2024 as wafer starts increased at the company's 4nm and 8nm processes. Samsung also reduced exposure to lower-margin products at mature 8-inch lines, improving operational efficiency.
Samsung began mass production in late 2025 of its Exynos 2600 mobile application processor using a 2nm process, with yields estimated in the 50% range on a per-wafer basis. As utilization improves, the company plans to expand orders for related materials and components in line with higher production levels.
Industry participants cited in the report said conditions in 2026 appear more favorable than in 2025, pointing to tighter supply at leading-edge processes at rival TSMC. The foundry business would need utilization above 80% to reach break-even, underscoring the need for stable mass production at advanced nodes to win the trust of large global customers. Samsung signed a KRW22 trillion contract in July 2025 to manufacture AI6 chips for Tesla.
Strong companywide performance shown in earnings guidance
Separately, Samsung Electronics on January 8, 2026, issued earnings guidance for the fourth quarter of 2025, providing a broader financial context. The company forecast consolidated sales of about KRW93 trillion and operating profit of about KRW20 trillion under Korean International Financial Reporting Standards.
Samsung said the figures represent the midpoint of its estimate ranges, which place sales between KRW92 trillion and KRW94 trillion and operating profit between KRW19.9 trillion and KRW20.1 trillion. Consolidated sales totaled KRW86.06 trillion in the third quarter of 2025 and KRW75.79 trillion in the fourth quarter of 2024, while operating profit rose to KRW12.17 trillion in the third quarter of 2025 from KRW6.49 trillion a year earlier.
The company did not provide a breakdown of foundry-specific results in its guidance.
Article edited by Jerry Chen
