Samsung Foundry's Road to Recovery: Tesla, AMD, and Qualcomm Drive 2027 Profitability Push

Samsung Foundry Eyes Major Turnaround

Samsung Electronics' foundry division, which has accumulated multi-trillion-won losses since 2022, is charting a course back to profitability by 2027. The recovery hinges on a combination of major customer wins, improved manufacturing yields, and strategic positioning as an alternative to capacity-constrained TSMC.

Tesla Partnership Anchors Recovery

At the heart of Samsung's turnaround is a sixteen-point-five billion dollar contract with Tesla, signed in July 2025, to manufacture the AI6 chip that will power Tesla's Full Self-Driving system, Optimus humanoid robots, and AI training infrastructure. Samsung's Taylor, Texas facility is preparing to begin trial operations of extreme ultraviolet lithography equipment in March 2026, with mass production of Tesla's AI5 and AI6 chips scheduled for the second half of the year.

The Taylor fab represents Samsung's largest US investment, with more than thirty-seven billion dollars committed through 2030. The facility has received four-point-seven-five billion dollars in support under the US Chips Act.

AMD and Qualcomm Return to the Fold

Beyond Tesla, Samsung is reportedly close to securing orders from AMD for its next-generation EPYC Venice server processors using the 2nm process. Qualcomm CEO Cristiano Amon confirmed at CES 2026 that the company is in discussions with Samsung for 2nm chip production, potentially for the Snapdragon 8 Elite Gen 5 that would power flagship smartphones in 2026 and 2027.

These developments mark a significant reversal for Samsung, which lost Qualcomm's business in 2021 due to yield and thermal performance issues.

TSMC Capacity Crunch Creates Opportunity

The renewed interest in Samsung stems partly from capacity constraints at TSMC, which controls roughly seventy percent of the global foundry market. With Apple and Nvidia locking up much of TSMC's advanced node capacity, competitors are seeking alternatives. Samsung's improved 2nm yields, now estimated at fifty-five to sixty percent compared to sub-thirty percent for its troubled 3nm process, have made it an increasingly viable option.

Financial Outlook

Analysts project Tesla AI chips will contribute three percent of Samsung Foundry revenue in 2027, rising to twenty percent by 2029. The division expects to swing from a seven trillion won loss last year to profitability next year through higher utilisation rates.