Samsung Foundry moves closer to profitability after years of losses by 2026

Monday 08 June 2026 - 12:59

By: Dakir Madiha

Samsung Foundry moves closer to profitability after years of losses by 2026

Samsung Electronics’ foundry division is approaching a return to profitability in the third quarter of 2026, marking a potential end to nearly four years of sustained losses that have weighed on the company’s semiconductor ambitions. Internal assessments and industry observations indicate the unit could reach break-even between July and September 2026, earlier than many market forecasts had projected.

The recovery has been driven by higher factory utilization rates, improved manufacturing yields, and an expanding portfolio of clients. The foundry business reportedly surpassed 80 percent utilization in the first quarter of 2026, its strongest level in over a year. This compares with significant operating losses accumulated in 2025, estimated at around 7 trillion won, highlighting the scale of the turnaround underway.

A central pillar of the strategy is Samsung’s advanced manufacturing site in Taylor, Texas, where the company is preparing to scale up production of 2-nanometer chips. The facility is backed by a long-term 16.5 billion dollar contract with Tesla for next-generation artificial intelligence semiconductors. Mass production at the site is scheduled for 2027, positioning it as a key asset in Samsung’s push into leading-edge chip manufacturing.

The broader semiconductor division is also benefiting from stronger demand, particularly in high-bandwidth memory used in artificial intelligence systems. The company reported record operating profits in early 2026, supported by this surge in AI-related components. As competition intensifies with leading global chipmakers, Samsung is working to strengthen its foundry business as a strategic counterweight to its memory segment and a critical driver of long-term growth.