Samsung Foundry, Samsung’s contract chipmaking arm, has invested billions in this area in the hope that there will be significant demand from major chip designers, but that demand has not materialized.
Samsung Foundry, after suffering a loss of almost one billion dollars in the third quarter of this year, has decided to stop about half of its production capacity. The main reason is not receiving new orders from customers.
According to a local Korean media report, Samsung has stopped several production lines in its chip factory to cut costs. Analysts estimate that the company suffered a loss of one trillion won (about $725 million) in the third quarter of 2024 alone, forcing Samsung to take drastic cost-cutting measures.
It is said that Samsung has stopped more than 30% of its 4, 5 and 7 nm lithography production lines. By the end of 2024, more than half of Samsung’s chip manufacturing facilities are expected to close. The Koreans will take these measures gradually to ensure that there is sufficient production capacity to meet new orders if customer demand increases.
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