Samsung foundry chief sees profit turnaround in 2028 - The Korea Herald

Samsung Electronics’ foundry chief Han Jin-man stated that the company’s contract chipmaking business is unlikely to become profitable in 2025, with 2028 being a more realistic target for a turnaround... Read original →

Samsung Foundry’s delayed profitability until 2028 reveals structural gaps in its advanced-node ecosystem. While securing Tesla’s AI6 (2nm) and Groq’s LPU (4nm) is a technical win, the absence of an integrated advanced packaging solution—akin to TSMC’s CoWoS—limits client retention in the AI chip race. Geopolitically, U.S. and EU subsidies for local fabs inflate Samsung’s overseas capex, while export controls heighten supply chain fragility. TSMC, leveraging superior 3nm yields and deep AI partnerships, is tightening pricing leverage; meanwhile, SMIC and other Taiwan, China foundries are capturing automotive and IoT demand with mature nodes. Over the next 12–24 months, without differentiation in HBM integration or chiplet interconnects, Samsung’s 2nm capacity risks becoming a costly fallback for second-tier AI firms, locking it into low-margin deals and pushing breakeven further out.