Samsung sets new target: Capture 20% of the global foundry market by 2027

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Industry News

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2025-11-13

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On November 12, South Korean media outlet ETnews reported that Samsung Electronics is aggressively accelerating the development of its 2nm GAA process to catch up with TSMC. The company is also proactively forging long-term partnerships with high-value customers, aiming to capture 20% market share by 2027 and ultimately achieve a turnaround from losses to profitability.

The report quoted a Samsung insider as saying that Samsung has "set a target of achieving a 20% market share by 2027 (based on sales revenue)." Since foundry services operate on an order-driven production model, Samsung must proactively procure the necessary equipment and materials. As a result, the company has already formulated a two-year operational plan.

Samsung's foundry division has been consistently reporting losses since 2022. While specific figures haven't been disclosed, industry estimates suggest the division is losing approximately KRW 1 billion to KRW 2 billion per quarter—roughly USD 680 million to USD 1.36 billion. Although Samsung's 3nm process has been in mass production for several years, it has yet to gain traction among major external customers, aside from being used internally for its own chips.

However, at the end of July this year, Samsung successfully signed a $16.5 billion wafer foundry contract with Tesla, marking a major breakthrough for Samsung's semiconductor foundry business. Additionally, Samsung is actively advancing mass production of its 2nm GAA process, with the company's own Exynos 2600 chip set to be the first to adopt it—expected to power the Galaxy S26 and S26 Plus smartphones launching in February next year.

Meanwhile, reports indicate that Samsung has also provided Qualcomm with samples of its 2nm GAA-based Snapdragon 8 Elite Gen 5 chip for evaluation. Qualcomm's next-generation Snapdragon 8 Elite Gen 6 and Gen 6 Pro are expected to adopt Samsung's manufacturing process.

To enhance the profitability of its foundry business, Samsung also plans to boost the capacity utilization rate at its Taylor, Texas, fab. Currently, the facility primarily produces mature processes ranging from 14nm to 65nm, while simultaneously laying the groundwork for 4nm and 2nm process lines. Meanwhile, ASML has already assembled a team ready to install EUV lithography equipment at the plant, paving the way for mass production to begin in 2026.

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