The Foundry of Samsung Aims Profitability Target Year in 2027 Major Turnaround Expectation
Samsung's semiconductor foundry business has put forth a management target of winning profits by 2027. Backing this strategy are major orders from leading tech giants such as Tesla and the activation of its new Taylor Fab in the continental United States. The company is further speculated to want to achieve a market share of 20 percent by this same date.
Overcoming Previous Challenges
Samsung's foundry business has incurred significant losses, going under since 2022. The quarterly losses have been estimated over a billion or two racking up to almost $2 trillion. The cause was such that the division had to enter the list of losing investments with no assurance even though investments have been made in advanced processes for the sake of profit, and no large-scale orders were achieved to cover the costs incurred in the process.
Key Factors Motivating the 2027 Objective
The fresh 2027 target is apt with the new renewed spirit in Samsung, which has flourished in recent successes and stabilization from technology. Some major points supporting this target include:
- Major Customer Wins: Within this contract manufacturing partnership, the company has established contracts strengthening their turnover with major North American technology giants including Tesla and Apple.
- Growing AI and HPC Salient Orders: Demand regarding chips concerning AI and HPC seems to have increased grossly on the less mature and stable processes as 4nm, 5nm, and 8nm.
- Reliable Yields: Unlike in the past, Samsung has successfully stabilized yield rates for these processes, which makes its manufacturing far more reliable and attractive to customers.
- Record Order Volume: Samsung has further stated that it has recorded the most considerable order volume in its history during its last corporate earnings briefing and that the loss had "drastically reduced" to below 1 trillion won.
The U.S. Taylor Fab A Cornerstone for Future Growth
The under-construction Taylor Fab is major within the entire framework of Samsung's strategy to achieve the objectives set by the company for 2027. Revenue generation is critically attached to this new plant, and the details include:
- Timeframe: The fab is scheduled to open next year, and installation of equipment is currently underway. Full operation is projected by the third quarter.
- Early Activation: With major clients like Tesla and Apple already signed to the new fab, Samsung expects maximum revenue from an early stage.
- Future Expansion: The company prepares for the second line (Phase 2) at the Taylor site, which is planned to be considerably larger than the initial production line.
The Future Path
Samsung's objective goes beyond only regaining its championship standing in memory but a significant comeback in non-memory areas-today, such as the foundry business. As per industry sources, success for this recovery will ultimately be pegged on the company's memory in making it through mastering the next-generation process technologies coupled with stable high-volume production yields.
