Samsung Electronics' foundry (chip contract manufacturing) division has set an internal goal to surpass 2 trillion won in operating profit next year. Orders from big tech are ramping up, starting with Tesla's artificial intelligence (AI) chips, and mass production volumes for customers on mature nodes are expanding. Attention is on whether the foundry division, which had posted trillion-won operating losses amid sluggish orders, will achieve a full-year return to the black for the first time in five years.
According to the industry on the 3rd, Samsung Electronics' foundry division has set a goal to exceed 2 trillion won in operating profit next year. Plagued by weak orders due to low Production yield on advanced nodes, Samsung Electronics' foundry division has posted multi-trillion-won losses since 2023. But with advanced nodes stabilizing and demand for mature nodes expanding, the division is expected to swing to profit as early as the fourth quarter of this year and post a full-year profit next year.
◇ Mass production of Tesla AI chips to begin next year; Exynos volumes to increase
Due to low Production yield, Samsung Electronics' foundry division was unable for years to supply Exynos, the application processor (AP) installed in the Galaxy series of Samsung Electronics' Mobile eXperience (MX) division. But as the 2-nanometer (nm; one-billionth of a meter) node's Production yield began to stabilize, it started supplying Exynos 2600 this year. With more Exynos-equipped models expected in the Galaxy series launching next year, the foundry division's output is forecast to increase.
Samsung Electronics' foundry division plans to mass-produce Tesla's AI chips on the 2 nm node next year through its Taylor fab in Texas. It will mass-produce the AI5 and AI6 chips, which serve as the brains for Tesla's Humanoid Robot Optimus, robotaxis and Autonomous Driving. In particular, the AI6 chip is reportedly being produced exclusively by Samsung Electronics' foundry division.
On the back of stabilized Production yield on advanced nodes, the division is seen accelerating order wins for products from Qualcomm and AMD. Qualcomm was previously a customer of Samsung Electronics' foundry division, and as the 2 nm node stabilizes, the likelihood of orders is growing. AMD is also seen as likely to knock on Samsung Electronics' foundry door due to TSMC's limited capacity.
◇ Orders rising for mature nodes, too… demand up for HBM logic dies, Groq AI chips and more ▲
Higher utilization on the mature 4–8 nm nodes also appears to be boosting profitability. Samsung Electronics is producing the logic die that serves as the brain of sixth-generation high bandwidth memory (HBM4), as well as AI chips from Groq, an AI Semiconductor startup backed by Nvidia, along with IBM chips and Nintendo chips, through its mature nodes. As the HBM market expands, demand for foundry-made logic dies is increasing, and tech corporations' order volumes are also believed to be rising.
A semiconductor industry official said, "The mature 4–8 nm nodes have secured stability through repeated mass production," and noted, "As mass production volumes from existing customers using these nodes increase, we are lifting profitability."