News
Chinese fabless firms increase orders to Samsung Foundry for non-regulated chips
Monday, January 26, 2026 at 08:36 AM
Chinese fabless semiconductor firms are increasing orders for Samsung Foundry as regulatory clarity improves regarding U.S. export controls. Following a period of project cancellations in early 2023, Chinese companies are now prioritizing Samsung for general-purpose and low-power chipsets that fall outside high-performance AI and HBM restrictions. This shift is also driven by Chinese firms diversifying away from TSMC to mitigate geopolitical risks associated with the Taiwan Strait.
Context
Samsung Foundry is seeing a resurgence in orders from Chinese fabless firms as regulatory uncertainty regarding U.S. export controls stabilizes. Throughout the first half of 2023, many Chinese clients halted projects immediately prior to mass production due to fears of U.S. Department of Commerce sanctions on AI and HBM-integrated chips. However, since late 2023, these firms have returned to Samsung, focusing on "non-regulated" chipsets for general-purpose and low-power applications that bypass current restrictions.
This shift positions Samsung as a strategic alternative to TSMC, as Chinese companies seek to mitigate geopolitical risks associated with the Taiwan Strait and over-reliance on a single region. While high-performance AI accelerators remain restricted, the influx of orders for mature and low-power processes is expected to significantly boost Samsung’s foundry revenue in 2024. The company’s success now hinges on balancing this Chinese demand with the expansion of its global customer base amidst the ongoing technological rivalry.
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