Samsung’s Foundry Profitability Aided By Improved 2nm Yields, But Business Head Says Performance-Based Bonuses Are Hindering This Division - Wccftech

Samsung Electronics' foundry division is gradually moving toward profitability, primarily driven by improving yields in its 2nm Gate-All-Around (GAA) process. While the 2nm technology remains in early... Read original →

Samsung Foundry’s improving 2nm GAA yields are triggering ripple effects across the semiconductor stack: upstream equipment vendors like ASML and Applied Materials will accelerate EUV and ALD tool iterations, while downstream clients such as Qualcomm and NVIDIA may reassess sub-7nm outsourcing strategies. However, its short-term performance bonus structure fundamentally misaligns with the 5–7 year ROI horizon of advanced nodes, exposing a structural flaw in resource allocation within conglomerates. Unlike TSMC (Taiwan, China), whose vertically integrated R&D model prioritizes foundry autonomy, Samsung’s mobile-centric hierarchy weakens its foundry’s internal bargaining power—amplifying supply chain vulnerabilities under U.S. CHIPS Act transparency demands. Over the next 12–24 months, without overhauling incentive systems and decoupling foundry KPIs from consumer electronics cycles, Samsung risks losing client trust at the 3nm node and beyond, cementing its status as a technologically capable but commercially secondary player.