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Samsung semiconductor division sees uneven recovery as foundry gap with TSMC widens
Sunday, January 4, 2026 at 03:21 AM
Samsung's semiconductor division is seeing a recovery in its memory business, but its foundry operations continue to struggle as the market share gap with TSMC widens. Despite efforts to compete in advanced nodes, the contract manufacturing segment has not yet achieved the desired momentum.
Context
Samsung’s non-memory and foundry divisions are projected to reach a significant financial turning point between late 2024 and 2025. Mirae Asset Securities expects the non-memory segment to achieve an annual operating profit of KRW 600 billion, marking a sharp recovery from previous cyclical losses. Supporting this outlook, Daishin Securities anticipates the segment will post a quarterly profit of KRW 37 billion by the third quarter of 2025, driven by improved fab utilization and stabilized yields on advanced nodes.
The anticipated turnaround is anchored by the mass production of the Exynos 2600, Samsung’s first mobile processor built on its cutting-edge 2nm Gate-All-Around (GAA) process. Strategic customer wins are also fueling momentum, highlighted by a major $17 billion contract to manufacture Tesla’s next-generation AI6 chips. With additional orders from Apple and Canaan, Samsung is positioning its foundry business to challenge industry leaders by scaling high-performance AI and mobile silicon throughout 2025.
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