Samsung contract manufacturing stabilizes with 4-nm and 8-nm chip lines

Samsung is gradually pulling its contract manufacturing out of a prolonged crisis. The company's factory utilization has increased to 60%, and financial losses in its non-memory division for the second half of 2025 have been halved. Despite a weak start with the 3-nm GAA process, Samsung has managed to stabilize the situation by relying on mature processes and more predictable orders.

A key factor in this recovery has been the 4-nm and 8-nm production lines, where chip yield has reached acceptable levels. These lines have driven the increase in utilization and allowed Samsung to attract new corporate clients, including companies in the artificial intelligence sector. Meanwhile, the 2-nm GAA process remains a strategic focus: improvements in yield lay the groundwork for future growth, but it is not yet a major revenue source.

Financial data points to a slow but steady move toward breakeven. In parallel, Samsung is cautiously ramping up DRAM production, aiming to avoid disrupting the supply-demand balance amid a temporary memory shortage. Overall, this shift in strategy is clear: instead of aggressive expansion, the company is betting on stability and risk control, with plans to turn its contract manufacturing profitable by 2027.