Samsung Targets 20% Market Share in Foundry Business by 2027 for Profitability

In the highly competitive foundry sector, TSMC remains a key player, yet Samsung is strategically aiming to turn its fortunes around by 2027. The company is focused on enhancing profitability within two years, leveraging advancements such as the ramp-up of 2nm Gate-All-Around (GAA) production and forging long-term partnerships with high-value customers.

Market Challenges and Strategic Initiatives

Since 2022, Samsung’s foundry division has struggled with significant financial losses, with industry estimates suggesting the company may be losing between $680 million and $1.36 billion each quarter. Despite the lack of specific financial disclosures from Samsung, sources indicate that achieving a target of 20% market share in sales by 2027 is a primary goal, as revealed by a senior industry insider via ETNews.

To realize this ambition, Samsung plans to enhance its order-based business model, necessitating the procurement of advanced manufacturing equipment in advance. The company’s two-year roadmap is pivotal to establishing a steady revenue stream.

Innovative Approaches and Collaborations

On a more positive note, Samsung’s partnership with Tesla for a $16.5 billion deal marks a significant breakthrough, potentially revitalizing the company’s standing within the sector. The emphasis on the 2nm GAA process is evident as this technology will power the upcoming Exynos 2600 system-on-chip (SoC), expected to debut in the Galaxy S26 and Galaxy S26 Plus models in February.

Additionally, Samsung has supplied Qualcomm with samples of the Snapdragon 8 Elite Gen 5 for evaluation. This relationship suggests that Qualcomm may consider turning to Samsung for their next-generation Snapdragon 8 Elite Gen 6 and Snapdragon 8 Elite Gen 6 Pro chipsets, moving away from its current suppliers.

Expansion Efforts at the Taylor Plant

Samsung is also focusing on maximizing efficiency at its Texas-based Taylor plant, which specializes in the production of mature nodes between 14nm and 65nm. Recently, ASML has been reported to be assembling a team to establish EUV (Extreme Ultraviolet Lithography) machinery at this facility, preparing for operations scheduled to begin in 2026.

Furthermore, the company has announced the completion of the foundational design for its second-generation 2nm GAA node. However, the immediate focus is on enhancing yields for its current 2nm GAA outputs, which will bolster productivity and profitability.

As Samsung navigates the complexities of the semiconductor landscape, the steps taken now will be crucial for restoring its market position in the foundry sector by 2027.

News Source: ETNews

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