Samsung to Cease 8-Inch Wafer Foundry Operations by 2030

Samsung Electronics has formally notified clients of its decision to exit the 8-inch (200 mm) wafer foundry business. The company intends to complete the closure of all associated production lines at its Giheung facility in South Korea by the end of 2030.

This move represents a strategic pivot aimed at consolidating capital and human resources into advanced 12-inch production lines. By focusing on nodes such as 3 nm and the emerging 2 nm Gate-All-Around (GAA) technology, Samsung seeks to improve the financial performance of its foundry division, which has faced significant operational challenges and maintenance costs associated with older, 8-inch technology.

For local fabless semiconductor companies that rely on Samsung’s 8-inch capacity, the exit creates an urgent need to secure alternative suppliers. The 8-inch segment is critical for producing power management ICs, display drivers, and sensors, for which demand remains robust despite the industry’s push toward smaller, more advanced nodes. Alternatives like DB HiTek are expected to face increased pressure as supply chains adjust.

Samsung’s withdrawal aligns with a wider industry trend, as global manufacturers reduce 8-inch capacity due to aging infrastructure and declining cost-efficiency compared to 12-inch facilities. According to market data from TrendForce, while 8-inch capacity is shrinking, utilization rates for mature process nodes remain high, leading to potential price volatility in the short term.