More Clients Leads to 80% Utilization at Samsung Foundry in 1Q2026

[benb]

Key Customer Wins (2025-2026):

• Tesla: Secured a major contract to produce next-generation AI6 chips, seen as a crucial deal for boosting credibility and profitability.
• Intel: Reportedly secured an 8nm order for PCH chips.
• AMD: Nearing a potential 2nm foundry deal.
• Other: Secured orders from AI startups such as Charbright (4nm) and Anaplash (28nm).

Based on recent reports from early 2026, Samsung Foundry is experiencing a significant recovery, with utilization rates exceeding 80% in Q1 2026, marking a one-year high and a potential turnaround in profitability. The company is aggressively targeting the AI and high-performance computing (HPC) markets with advanced 2nm and HBM4 technologies, while expanding its client base to include Tesla, Intel, and others to reduce its reliance on, and competition with, major customers.

• 2nm and 1.4nm Roadmap: Samsung is focusing heavily on 2nm Gate-All-Around (GAA) technology, with yields reportedly reaching 55-60% by late 2025. The company is targeting 1.4nm mass production by 2029.
• US Expansion: The Taylor, Texas, foundry plant remains on track for operations, with setup, including EUV equipment, progressing for a 2026 start.
• Profitability Targets: Samsung aims to achieve 20% market share by 2027 and turn its foundry business profitable within two years.

Strategic Moves

• "Turnkey" Strategy: Leveraging its ability to provide memory (HBM4), logic foundry, and advanced packaging in a single solution, particularly for AI clients.
• No Spin-off: Contrary to rumors, Samsung has no plans to spin off its foundry division, aiming instead for growth and deep integration.
• Overcoming Yield Issues: After struggling with 3nm yields, early deployment of GAA in 3nm and advancements in 2nm are being used to challenge TSMC's dominance.

https://www.tweaktown.com/news/109373/samsung-foundry-could-secure-an-important-order-for-intel-pch-chips-on-older-8nm-process-node/index.html

Samsung Foundry rebounds with utilization above 80% in 1Q26

Samsung Electronics' foundry utilization exceeded 80% in the first quarter of 2026, its highest level in over a year, increasing the probability of a quarterly profit turnaround this year.

www.digitimes.com

Samsung Foundry May See Profit in 2027 Thanks to Tesla AI Chip Deals

Tesla AI chip deals could end years of losses at Samsung Foundry, with analysts expecting a return to profit as early as 2027.

sammyguru.com

 

[benb]

Best news here is AMD potentially joining Tesla at 2nm.

No mention of Apple. Apple previously announced a US manufacturing initiative that included Samsung. But since the announcement, no further news, suggesting the negotiations between Samsung and Apple may be a little difficult.