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Samsung foundry utilization projected to reach 60 percent range in first half of 2024
Friday, January 16, 2026 at 07:11 AM
Samsung Electronics is seeing a recovery in its foundry fab utilization rates, which are projected to reach the 60% range in the first half of 2024, up from the 50% range in late 2023. The recovery is driven by increased wafer starts in 4nm and 8nm processes and the commencement of 2nm-based mobile processor production. Despite narrowing losses, the division requires an 80% utilization rate to break even. Growth is supported by a significant AI accelerator chip contract with Tesla.
Context
Samsung Electronics is seeing a steady recovery in its foundry utilization rates, which are projected to reach the 60% range in the first half of 2024. This marks a significant climb from the 50% range recorded in late 2023. The uptick is driven by increased wafer starts in 4nm and 8nm processes, helping to narrow quarterly operating losses from 2 trillion won to approximately 1 trillion won as the company optimizes its legacy and advanced production lines.
Although Samsung must exceed an 80% utilization rate to reach breakeven, the current trend signals a strategic pivot. As TSMC faces capacity constraints for leading-edge nodes, Samsung is capitalizing on the supply gap to secure major contracts, including a landmark 22 trillion won deal with Tesla for AI accelerator chips. By advancing its 2nm roadmap and stabilizing yields, the company is positioning itself to regain market share from global Big Tech clients and return to profitability throughout the year.
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