Samsung said to exit 8-inch foundry as TSMC eyes Texas

Samsung Electronics’ foundry business, the arm that makes chips designed by other companies, drew three pieces of news on Nov 2 and 3. One concerns its oldest production lines, one a rival’s possible new plant in Texas, and one a partner’s first shipments on a newer Samsung process.

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A reported exit from 8-inch wafers by 2030

Samsung has decided to leave the 8-inch wafer foundry business altogether, with the exit due by 2030, according to The Elec, DigiTimes and TrendForce. The figure refers to the diameter of the silicon discs that chips are built on.

The Elec was first with the story, at 18:15 Korea time on the evening of Nov 2. DigiTimes and TrendForce carried it the next day. Both described it as reported news rather than something Samsung itself had announced.

Under the plan, the 8-inch foundry lines Samsung still runs would close by the end of 2030, DigiTimes reported. The same outlet said South Korean chip designers that depend on those lines will have to secure production at other plants. That search comes at a time when competing foundries are operating close to their limits, according to DigiTimes.

TrendForce framed the decision as Samsung accelerating its retreat from mature-node production, meaning older and less advanced manufacturing processes, as the company reshapes its foundry strategy. TrendForce also placed Samsung’s plan alongside capacity cuts at TSMC, the Taiwanese company that is the largest rival to Samsung’s foundry arm.

Samsung shares closed at 219,500 won on Nov 3, down 2.44% from 225,000 won on Oct 30, the last close before The Elec’s report. That change is spread over more than one session. The TIGER 200 ETF, which tracks the KOSPI 200 index of large Korean companies, lost 1.64% across the same days.

TSMC weighs a Texas hub nearer Samsung’s Taylor plant

TSMC is reportedly nearing a choice of Sherman, Texas, for a possible fab expansion worth US$45 billion, TrendForce reported. A fab is a chip manufacturing plant. If TSMC goes ahead, Sherman would be its second major manufacturing site in the U.S., according to TrendForce.

BusinessKorea reported that TSMC is considering Sherman as a potential new production hub. A move there would put TSMC closer to Samsung’s chip plant in Taylor, Texas, the Korean outlet said.

TrendForce said the possible move raises the stakes for Samsung.

A design partner ships chips on Samsung’s 4nm

Shipments of chips made on Samsung’s 4nm process are now underway at CoAsia Semi, which made the announcement on Nov 2, The Elec reported.

CoAsia Semi is a semiconductor design house that acts as a design solution partner, or DSP, according to The Elec. Its shipments mean chips designed with its help are now coming off one of Samsung’s more advanced manufacturing processes, rather than the older lines that the 8-inch report concerns.

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Information only, not investment advice.