[News] Samsung Reportedly to Exit 8-Inch Foundry by 2030 as TSMC Also Cuts Capacity

Samsung Electronics is accelerating its shift away from mature-node manufacturing as it refocuses its foundry strategy. According to The Elec, citing industry sources, the company has notified customers of plans to exit the 8-inch foundry business entirely by the end of 2030, redirecting workforce and equipment investments toward advanced 12-inch wafer processes.

During its first-quarter earnings call in April, Kang Seok-chae, vice president of Samsung’s foundry business, outlined plans to gradually phase out 8-inch production lines for power semiconductors, display driver ICs (DDIs), and image sensors. Samsung has also stopped accepting orders for new 8-inch products since the beginning of 2026, the report notes.

Samsung’s 8-inch foundry operations cover mature process nodes ranging from 65nm to 180nm, including 65nm, 70nm, 90nm, 130nm, and 180nm. These processes support production of DDIs, power management ICs (PMICs), microcontrollers (MCUs), and image sensors. The company began mass production at 180nm in 2000, followed by 130nm in 2002, 90nm in 2006, and 70nm in 2011, according to The Elec.

Limited 8-Inch Capacity Leaves Fabless Customers Seeking Alternatives

Samsung’s planned exit is putting pressure on South Korean fabless chipmakers to secure alternative production capacity. As The Elec notes, domestic options are limited, with DB HiTek and SK keyfoundry already heavily committed to existing customers, leaving little room to accommodate orders transferred from Samsung.

Overseas alternatives offer limited relief. Taiwan’s 8-inch foundries also have little spare capacity, while shifting production to China could face restrictions imposed by end customers on Chinese-made chips.

Moving to 12-inch wafers presents further challenges. According to The Elec, Samsung’s 8-inch customers rely on 90nm to 180nm processes to meet cost and product requirements. Switching to more advanced processes could raise manufacturing costs and require chip redesigns and renewed qualification, particularly for analog chips that rely on specialized high-voltage processes.

The broader 8-inch foundry market is also tightening. According to TrendForce, capacity cuts by Samsung and TSMC, coupled with growing demand for AI-related power chips, are expected to push average 8-inch utilization among the world’s top 10 foundries to nearly 90% in 2026, up from around 80% in 2025. With global capacity expected to continue shrinking through the first half of 2027, utilization is projected to remain above 80%.

TSMC Reportedly to Shift 80% of 8-Inch Capacity to Vanguard

As part of its capacity restructuring, TSMC is reportedly also planning to transfer around 80% of its annual 8-inch wafer capacity of approximately 5 million wafers to its affiliate Vanguard International Semiconductor (VIS) in phases over the coming years. According to Economic Daily News, citing industry sources, TSMC is gradually reducing its direct involvement in mature-node manufacturing while retaining its 8-inch business for strategic support. The transition involves capacity consolidation and equipment sales, with TSMC having sold 8-inch manufacturing equipment to Vanguard twice in recent years, the report adds.

Meanwhile, TSMC may be preparing for further advanced-node expansion. According to Liberty Times, citing Wccftech, Taiwan’s NSTC Minister Wu Cheng-wen revealed plans for a new science park in Tainan to support 1nm technology, with development expected to begin in 2027. Although Wu did not name TSMC, the report suggests the site could house its future 1nm fab.

Read more

• [News] Samsung Sees 8nm-and-Below Utilization Topping 100% in 2027; 2nm Projects to More Than Double
• Capacity Cuts and Surging Demand for AI Power ICs Set Stage for Mature-Node Foundry Price Increases, Says TrendForce

(Photo credit: Samsung)