Samsung’s Foundry Business Set to Transform in 2026: Key Insights
- Profitability on the Horizon: Samsung’s 2nm GAA process yield rates are stabilizing, positioning the company for profitability in its foundry segment by 2026.
- Customer Migration: TSMC’s capacity constraints are driving customers like Qualcomm to consider Samsung as a viable alternative for chip manufacturing.
- Significant Investments: With over $37 billion invested in its Texas facility, Samsung is upgrading to advanced production capabilities, set to begin operations in March.
As we look ahead to 2026, Samsung’s foundry business is poised for significant transformation, with promising developments in its 2nm Gate-All-Around (GAA) process. Recent insights indicate that yield rates for this cutting-edge technology are stabilizing, heralding a turning point for the company. With a growing influx of customer orders, it is anticipated that Samsung’s foundry segment will achieve profitability next year, thereby enhancing its competitive edge in the semiconductor market.
In stark contrast, TSMC’s production capacity has reportedly reached its upper limits, prompting many clients to seek alternatives. Notably, Qualcomm is among those exploring partnerships with Samsung for upcoming chip manufacturing needs. This shift is a critical indicator of Samsung’s potential resurgence in the foundry landscape, particularly as it aligns itself with major industry players.
A substantial investment has been made by Samsung in its Tyler, Texas facility, exceeding $37 billion. As part of its ongoing commitment to innovation, the company plans to commence test operations on extreme ultraviolet (EUV) lithography equipment by March. This pivotal upgrade will transition their production line from a 4nm process to the more advanced 2nm GAA process, equipping Samsung to meet the increasing demands of the semiconductor market effectively.
The ramifications of Samsung’s production line upgrades extend beyond internal operations. Qualcomm, a key player in the mobile processing sector, is set to become one of Samsung’s prominent partners. To optimize manufacturing costs, Qualcomm’s upcoming Snapdragon 8 series flagship chips will leverage Samsung’s 2nm GAA process. This strategic collaboration illustrates both companies’ commitment to innovation and cost efficiency in a rapidly evolving industry.
Reports suggest that the standard version of Qualcomm’s Snapdragon 8 Elite Gen6 series may utilize Samsung’s advanced 2nm GAA process, while the higher-end Pro variant is expected to employ TSMC’s N2P process. Additionally, there is speculation that the forthcoming Snapdragon 8 Elite Gen7 series may be entirely produced by Samsung, signaling a potential long-term partnership.
Historically, Qualcomm’s Snapdragon series has predominantly featured chips manufactured by Samsung, including the Snapdragon 888 and Snapdragon 8 Gen1 models. However, challenges, particularly thermal issues, led Qualcomm to transition to TSMC for the Snapdragon 8+ Gen1 version. The latest updates suggest that in a bid to reduce foundry expenses, Qualcomm may be reversing course and returning to Samsung as a preferred manufacturing partner.
This dynamic shift reflects not only the competitive landscape within the semiconductor industry but also the growing confidence in Samsung’s improving production capabilities. As established leaders like TSMC face capacity limitations, Samsung’s proactive investments and technological advancements position it as a formidable alternative for chip manufacturers seeking reliability and cost-effectiveness.
In conclusion, the year 2026 is set to be pivotal for Samsung’s foundry business, with advancements in the 2nm GAA process promising stabilization and profitability. As Qualcomm and other industry players reconsider their manufacturing strategies amidst TSMC’s constraints, Samsung’s investments and upgrades will likely play a crucial role in reshaping the semiconductor foundry landscape and enhancing its position within the global market. The industry’s eyes will remain on these developments as they unfold, shaping the future of chip manufacturing.
