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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Samsung Electronics' Foundry Business has decided to delay the establishment of its 1.4-nanometer (nm) test production line originally scheduled for this year, opting instead to focus on enhancing yield and capacity for its upcoming 2nm process, slated for mass production by the end of 2024.
According to industry sources on June 23, Samsung had planned to begin constructing a 1.4nm test line in the second quarter at its Pyeongtaek Plant 2. However, that investment has now been postponed to late this year or the first half of 2025 at the earliest. This delay casts doubt on Samsung’s previously announced roadmap to offer 1.4nm process services starting in 2025, with some projections now estimating mass production to begin around 2028.
The decision reflects broader challenges facing Samsung’s foundry division, including sluggish demand and declining revenue. The business reportedly posted an operating loss of nearly KRW 2 trillion (approx. USD 1.45 billion) in Q1 alone.
As a result, Samsung is scaling back its annual capital expenditures for foundry facilities from over KRW 10 trillion to approximately KRW 5 trillion this year. The postponed 1.4nm test line had been the division’s only planned leading-edge investment for 2024.
Samsung is now prioritizing the ramp-up of its 2nm process, aiming to boost yield rates and secure production efficiency before mass manufacturing begins at the end of this year. The strategic pivot marks a shift from aggressive frontier-node investment to a more focused approach on operational execution and technological maturity in response to current market conditions.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
