Samsung Foundry expected to turn profit in Q3 2026

Samsung Foundry Expected to Return to Profit in Q3 2026

Samsung Electronics’ foundry division is on track to turn profitable as early as the third quarter of 2026, ending roughly four years of losses that have weighed on the company’s semiconductor ambitions.

Industry observers and internal assessments indicate the contract chipmaking unit could achieve profitability in the July-September period, according to Korean media reports published on June 7. The turnaround would come sooner than many analysts had predicted, buoyed by rising utilization rates, new customer orders, and preparation for advanced-node production at the company’s Taylor, Texas facility.x

Yield Improvements and Rising Utilization

Samsung Foundry’s recovery has been building since early 2026. Digitimes reported in February that foundry utilization exceeded 80% in the first quarter, the highest level in over a year. That marked a sharp improvement from 2025, when the division reportedly logged combined operating losses of roughly 7 trillion won.digitimes

The improvement has been driven in part by new customer wins and stronger yields on existing process nodes. ET News reported in March that Samsung had moved up its foundry break-even target to 2026, accelerating an earlier timeline. TrendForce similarly noted that the company aims to return its foundry segment to profitability this year.trendforce

Taylor, Texas and the 2nm Ramp

A key part of Samsung’s foundry strategy centers on its Taylor, Texas plant, where equipment installation ceremonies took place in April as the company prepares for 2-nanometer production. The facility is anchored by a multiyear contract worth $16.5 billion with Tesla to produce next-generation AI chips using the 2nm process, with mass production expected to begin in 2027.chosun

Margaret Han, vice president of Samsung Foundry’s North American operations, confirmed at a recent event that the Taylor fab will begin production in 2027, with process roadmap details to follow at the Korea SAFE Forum on July 1.trendforce

Broader Semiconductor Momentum

The foundry recovery comes as Samsung’s overall semiconductor business surges. The company posted record first-quarter 2026 operating profit of 57.2 trillion won, driven largely by AI-related memory demand including high-bandwidth memory. Analysts at KB Securities project total operating profit of 327 trillion won for 2026.investing

The foundry unit, while still a fraction of Samsung’s memory earnings, represents a strategic priority as the company competes with TSMC for advanced chip contracts from major technology firms seeking supply chain diversification.x