Samsung Electronics’ foundry business is experiencing a rapid recovery, with factory utilization rates exceeding 80 percent, driven by strong demand for advanced semiconductor manufacturing. The gains are attributed to the successful implementation of its High Bandwidth Memory 4 (HBM4) base die using a 4-nanometer process, and the performance of its Exynos 2600 mobile processor.
According to industry sources, the utilization rate at Samsung’s P2 and P3 foundry production lines in its Pyongtaek campus reached the 80 percent range in the first quarter of 2026. These lines, which produce semiconductors using 4nm, 5nm, and 7nm processes, had struggled with underutilization in the latter half of 2024, with rates falling below 50 percent. However, the introduction of HBM4, coupled with orders from major technology companies, has spurred a significant turnaround.
The company’s ability to deliver leading-edge HBM4 performance, utilizing its 4nm process, has attracted substantial orders. Both U.S.-based and Chinese tech giants are reportedly seeking Samsung’s manufacturing capabilities, signaling a broad resurgence in demand for its foundry services. Sources familiar with Samsung’s semiconductor production anticipate that foundry utilization rates will surpass 80 percent in the first half of 2026.
Further bolstering Samsung’s prospects is the increasing volume of its 2nm production, driven by the Exynos 2600. Early indications suggest the Exynos 2600 outperforms competing chips from Qualcomm, potentially leading to increased adoption in Samsung’s Galaxy S26 smartphones.
Analysts predict a potential turnaround for Samsung Electronics’ Device Solutions division, encompassing the foundry and System LSI businesses, as early as the fourth quarter of 2026. The production of components like Tesla’s AI5 and Apple’s image sensors, slated to initiate in 2027, is expected to drive overall operating profit into positive territory.
Industry observers believe the recovery of the foundry business will strengthen Samsung Electronics’ position as a comprehensive semiconductor company.
