August 5, 2026 / SemiMedia / — Samsung Electronics’ foundry business plans to achieve 100% capacity utilization in the second half of 2026 as demand for advanced semiconductor processes continues to increase.

Samsung Foundry’s current utilization rate is estimated at approximately 70% to 80%. Growing demand for HBM4 base dies and additional orders from major U.S. technology companies are expected to drive the rate higher.

The foundry business has experienced prolonged losses because of low utilization at its advanced-process facilities. Since 2024, utilization at some 4nm and 5nm production lines reportedly fell below 50%, while equipment investment and fixed costs placed continued pressure on profitability.

The current recovery is mainly being driven by AI infrastructure demand. HBM4 uses base dies manufactured with a 4nm process, creating additional foundry orders for Samsung.

Demand for AI and high-performance computing chips from major U.S. technology companies is also supporting the expansion of Samsung’s advanced-process production.

Samsung has recently expanded its advanced-node customer pipeline. The number of its 2nm projects has more than doubled from last year, with several programs involving cloud-service, AI and HPC customers currently underway.

Projects involving major customers including Broadcom are also expected to support the growth of Samsung’s foundry business.

However, the yield of Samsung’s 2nm process remains important to its long-term profitability. The current yield is estimated at approximately 60%, while the industry considers a level of around 70% necessary to support large-volume production orders.

During its latest earnings conference call, Samsung said capacity utilization had improved across all process nodes compared with last year. Utilization of advanced nodes below 8nm has already reached a relatively high level.

The company expects the number of 2nm project orders in 2026 to increase by more than twofold from last year and said its foundry business could return to profitability within a relatively short period.

Samsung expects advanced processes to account for more than 50% of its foundry revenue this year. The share generated by AI and HPC applications is projected to rise from approximately 10%–20% last year to more than 30%.

Samsung is also advancing construction of its semiconductor facilities in Taylor, Texas. The first Taylor fab is scheduled to begin operations this year, while construction of the second fab is expected to start within the year, with volume production targeted for 2030.