Samsung says it has secured new 2nm chip manufacturing projects from a major cloud service provider and several high performance computing customers, giving its foundry business fresh momentum as production expands during the second half of 2026.
The company has not identified the customers involved. However, it confirmed that design work has already started for products expected to use its advanced manufacturing process.
Samsung now expects the number of 2nm projects secured during 2026 to more than double compared with the previous year. The stronger order pipeline could help improve factory utilisation and support the company’s effort to return its foundry division to consistent profitability.
| Detail | Current position |
|---|---|
| Manufacturing process | 2nm |
| New customers | Major cloud provider and HPC companies |
| Customer design work | Already underway |
| 2026 project outlook | More than double year over year |
| Production expansion | Planned for the second half of 2026 |
| Foundry profitability | Improving, but full turnaround not confirmed |
New customers expand Samsung’s 2nm pipeline
Samsung said it has won 2nm projects from a major cloud service provider, commonly known as a CSP, as well as customers developing chips for high performance computing.
Cloud companies increasingly design their own processors and accelerators for data centres. These chips can be used for artificial intelligence, networking, storage and general computing workloads.
HPC customers also require advanced manufacturing because smaller process nodes can provide better performance, density and power efficiency when the designs are successful.
The new agreements suggest Samsung is finding demand beyond smartphones and consumer processors. A broader customer base could reduce its dependence on a small number of large mobile chip orders.
The company did not reveal when the new products will enter mass production. Design work for advanced chips can take a long time, and customers must complete testing before committing to large manufacturing volumes.
Foundry performance is improving as utilisation rises
Samsung’s foundry operation has faced questions about profitability, manufacturing yields and its ability to compete for leading chip orders.
Management said higher factory utilisation, improved yields and price increases have produced a significant improvement compared with the previous year. It added that the recovery is gaining momentum.
Better utilisation means more of the company’s production equipment is actively generating revenue. Improved yields allow Samsung to obtain more working chips from each wafer, reducing the cost of manufacturing every usable product.
Price increases can also support margins, although they may depend on customer demand and the complexity of each chip.
Samsung remains cautious about declaring a full recovery. The foundry business relies heavily on customer orders, which can change depending on product demand, economic conditions and delays in chip development.
The company expects a turnaround in the near future, but it has not provided a firm date or separate profit figures for the foundry division.
Discussions with Broadcom and other companies continue
Samsung is also holding discussions with Broadcom and additional customers about advanced process technologies.
The two companies recently announced a large memorandum of understanding covering cooperation across memory and foundry services. The planned relationship is expected to extend over five years and could include manufacturing Broadcom chips with Samsung’s 2nm technology.
A memorandum of understanding does not guarantee that every proposed project will enter mass production. Customers normally evaluate performance, yields, cost and delivery schedules before placing final orders.
Even so, the discussions provide Samsung with another opportunity to secure high volume products for networking, cloud infrastructure and artificial intelligence systems.
Large contracts would improve production visibility and help Samsung justify continued investment in advanced factories and manufacturing equipment.
More than twice as many projects are expected in 2026
Samsung believes its current negotiations and confirmed customer work will allow it to secure more than double the number of 2nm projects during 2026 compared with 2025.
The number of projects alone does not show their financial value. A small test chip and a high volume processor can both count as individual projects while generating very different levels of revenue.
Still, a wider design pipeline is important because only some projects will eventually reach full production. Securing more customers increases the chance that several chips will advance into commercial manufacturing.
Samsung must also continue improving yields as production expands. Advanced nodes are expensive to develop, and weak yields can reduce profitability even when demand is strong.
The latest customer wins suggest that Samsung’s 2nm process is attracting serious interest from cloud and HPC companies. The foundry business has not yet confirmed a complete financial recovery, but stronger utilisation, improving yields and a growing project pipeline provide a clearer path towards one.
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