Samsung Foundry Business Operating Rate Projected to Hit 60% Amid Slow Recovery; $680 Million Deficit Narrowed in Last Two Quarters of 2025

In the latter half of 2022, Samsung’s foundry utilization rate struggled at just 50 percent. However, recent reports indicate a positive shift, with the operating rate now rising to 60 percent. This improvement coincides with the company’s advancements in its 2nm Gate-All-Around (GAA) technology, achieving yields of around 50 percent. As Samsung aims for profitability in its foundry operations by 2027, projections suggest an operating profit could reach an extraordinary $69 billion this year.

Turning the Tide: Recovery from 3nm GAA Challenges

The struggles associated with the 3nm GAA process have significantly affected Samsung’s finances, driving customers toward competitors like TSMC due to lackluster yields. Recent insights from ZDNet reveal that Samsung’s non-memory division faced losses estimated at approximately 2 trillion won (around $1.36 billion).Fortunately, the company appears to be reversing this trend.

While the increase in utilization rates isn’t primarily fueled by 2nm GAA customers—although notable deals have been secured, including a $16.5 billion contract with Tesla for AI6 chip production—the boost is largely attributed to heightened orders for 4nm and 8nm technologies. Current yields for the 4nm process are reportedly around a more reliable 60-70 percent. Additionally, it has been disclosed that Samsung recently obtained a $100 million contract from a U. S.AI firm for the development of an Omni processor.

As for the substantial loss of $1.36 billion, reports indicate a reduction to approximately 1 trillion won (around $680 million) in the latter quarters of 2025, suggesting that Samsung is steadily progressing towards financial stability. Meanwhile, in its memory division, Samsung is riding high on the current market shortages, managing to increase DRAM production by 5 percent to 8 million wafers. Nevertheless, this is still below anticipated demand for the year, as the manufacturer takes a conservative approach, preparing for future market adjustments.

For further information, check the original news source at ZDNet.

Additionally, for more insights, visit WccfTech.