Citrini View: Samsung seeks new 5nm customers after 4nm foundry capacity is fully booked, negotiations for major 2nm orders delayed.

October 20 - Citrini analyst Jukan stated that Samsung Electronics' foundry business's 4nm process capacity has recently become nearly saturated due to increased customer orders, and the company is exploring new customers for 5nm. Meanwhile, in 2nm foundry negotiations with global tech giants, some discussions are progressing slower than initially expected.

The analyst pointed out that 4nm covers mobile processors, AI chips, and high-performance computing chips, and the expansion of AI semiconductor demand is also driving demand for contract manufacturing that does not necessarily require the most advanced processes. As 4nm capacity approaches full utilization, Samsung can offer 5nm as an alternative based on performance and cost requirements to improve the utilization of existing production lines. Industry observers believe that the recovery in 4nm utilization and new 5nm orders are expected to improve short-term profitability and help the foundry business reduce losses, while 2nm still needs to prove its competitiveness through major customers and mass production results.