Samsung Could Boost Foundry Utilization to 60% in H1 2026

Samsung’s foundry business recently started showing signs of steady recovery. Industry now expects the Korean foundry to reach its fab utilization rate around 60% in the first half of 2026. This shows the company is on the right track to gradually narrow the profitability gap.

Samsung Foundry may continue to show a gradual comeback

In recent years, Samsung suffered substantial losses in its foundry division due to weak demand for its cutting-edge 3nm chips and a lack of key clients. The company’s non-memory division saw operating losses of around 2 trillion Korean won in the first and second quarters of 2025. However, the losses were reduced to about 1 trillion won in the third and fourth quarters. This is mainly because of increased production in its core nodes, such as 4nm and 8nm. On top of that, it has cut its older 8-inch (200mm) wafer output to prioritize advanced 12-inch (300mm) node production.

Now it looks like the recovery is continuing into 2026. According to ZDNET Korea, Samsung’s foundry fab utilization rate could reach around 60% in the first half of the year. This is an increase from around 50% in the second half of 2025. The reason is that the company is now seeing demand for both core and cutting-edge semiconductor nodes.

Samsung began mass production of its latest 2nm mobile chip, the Exynos 2600, at the end of 2025. The chip will likely power some upcoming Galaxy S26 and S26+ units. While the yield is still around 50% per wafer, this shows the firm’s ability to make advanced chips at scale.

However, industry analysts suggest that Samsung’s foundry division should reach a fab utilization rate of around 80% to break even. That means the company still has some way to go before making its non-memory division profitable. Key chip-making deals, such as the $16.5 billion contract with Tesla, should play a key role in increasing utilization in the coming years.