January 19, 2026 /SemiMedia/ — Samsung Electronics plans to shut its S7 8-inch wafer fab in Giheung in the second half of this year, reducing its monthly 8-inch wafer capacity by about 50,000 wafers, industry sources said.

Following the closure, Samsung’s total 8-inch output is expected to fall from around 250,000 wafers per month to below 200,000, with customer orders already being redirected to other foundries.

The move reflects Samsung’s continued shift away from mature-node production. Utilization rates at its 8-inch fabs have remained near 70%, while rising maintenance costs and limited margin upside have pushed the company to focus more resources on 12-inch manufacturing.

Samsung’s decision comes amid a broader industry pullback. Taiwan Semiconductor Manufacturing Co has also been scaling down 8-inch capacity, with some fabs expected to be fully phased out next year as foundries streamline operations.

Despite the supply reduction, demand for 8-inch wafers remains firm. Market data show global 8-inch capacity is set to decline this year, while utilization rates are climbing, supported by steady orders for power management chips used in AI servers and industrial systems.