Samsung Electronics said it expects its foundry business to return to profit in the near future. To meet rising demand for advanced nodes, it will expand production capacity at its Taylor plant in the United States and shift existing mature nodes to focus on high-profit processes.
Samsung Electronics said on a conference call for second-quarter results on the 30th that while "it is difficult to specify the exact timing given the nature of a build-to-order industry," it "expects a turnaround to profit in the near future."
The company said the current pace of expanding advanced-node capacity is not keeping up with growing customer demand. Samsung Electronics said, "Taylor Fab 1 is proceeding on plan to be ready for operation in 2026, and we plan to expand 2-nanometer capacity in phases thereafter."
It is also pushing to build additional production facilities. Samsung Electronics said, "To respond in a timely manner to increasing customer demand, we are preparing to start construction of Taylor Fab 2 at the end of this year, targeting mass production in 2030," adding, "As customer inquiries for 1.4-nanometer increase, we are also reviewing securing an additional fab." Specific investment plans will be finalized in stages based on customer orders and consultation results.
It will reorganize existing mature nodes into high-profit advanced and specialized processes. Samsung Electronics said, "We are converting mature nodes into high-profit advanced nodes and pursuing an operating strategy that concentrates capabilities on high–value-added specialty demand with high technological barriers."
It added, "We will expand capacity for 8-nanometer and 17-nanometer image sensors (CIS) and embedded non-volatile memory (eNVM), where demand is rising," and "We are also focusing on securing future-technology capacity, including integrated silicon capacitors and silicon photonics."