Samsung Reportedly to Exit 8-Inch Foundry by 2030 as Capacity Tightens

By Grace Kim

Samsung Electronics has notified foundry customers that it plans to exit the 8-inch business entirely by the end of 2030, according to The Elec, which cited industry sources.

The company will redirect workforce and equipment investment toward advanced 12-inch wafer processes.

At an April first-quarter earnings call, Samsung foundry vice president Kang Seok-chae outlined plans to "gradually phase out 8-inch production lines" serving power semiconductors, display driver ICs and image sensors, according to The Elec.

Samsung stopped accepting orders for new 8-inch products at the start of 2026.

What changes in Samsung's 8-inch business?

Samsung's 8-inch foundry covers mature process nodes from 65nm to 180nm. The reported process options include:

• 65nm, 70nm, 90nm, 130nm and 180nm.

Those lines support display driver ICs, power management ICs, microcontrollers and image sensors.

The Elec's chronology maps four reported process additions, starting with 180nm mass production in 2000 and ending with 70nm production in 2011, according to its report.

• 180nm: Mass production began in 2000.
• 130nm: Mass production began in 2002.
• 90nm: Mass production began in 2006.
• 70nm: Mass production began in 2011.

The order cutoff keeps new 8-inch products out of Samsung's order book before the scheduled exit, while existing production follows the company's announced gradual phaseout through the end of 2030.

Where can fabless customers find replacement capacity?

Samsung's reported exit puts pressure on South Korean fabless chipmakers seeking replacement capacity. DB HiTek and SK keyfoundry are already heavily committed to existing customers, leaving little room to absorb orders transferred from Samsung.

Overseas alternatives offer limited relief. Taiwan's 8-inch foundries also have little spare capacity, while shifting production to China could face restrictions imposed by end customers on Chinese-made chips.

Moving to 12-inch wafers does not provide an automatic substitute. The Elec says Samsung's 8-inch customers rely on 90nm through 180nm processes to meet cost and product requirements.

More advanced processes can raise manufacturing costs. They also require chip redesigns and renewed qualification, particularly for analog chips that use specialized high-voltage processes.

Scarce foundry space therefore does not remove the switching cost.

How tight does 8-inch capacity become?

TrendForce expects average utilization among the world's top 10 8-inch foundries to reach nearly 90% in 2026, up from around 80% a year earlier in 2025.

The forecast links capacity cuts by Samsung and TSMC to growing demand for AI-related power chips.

Global 8-inch capacity is expected to continue shrinking through the first half of 2027, keeping utilization above 80% during that period.

These figures are projections rather than reported operating utilization or confirmed capacity commitments.

Under that outlook, fabless designers will have fewer open lines and less room to shift mature-node production between foundries.

This tight market follows a roughly 10-percentage-point rise in forecast average utilization.

What is TSMC shifting to VIS?

TSMC reportedly plans to transfer around 80% of its annual 8-inch wafer capacity of approximately 5 million wafers to affiliate Vanguard International Semiconductor (VIS) in phases over the coming years.

Economic Daily News, citing industry sources, described the move as a gradual reduction in TSMC's direct role in mature-node manufacturing. TSMC would retain its 8-inch business for strategic support.

The restructuring combines capacity consolidation with equipment sales. TSMC has sold 8-inch manufacturing equipment to VIS twice in recent years, according to Economic Daily News.

The transfer would shift more execution to VIS while preserving a strategic TSMC presence in 8-inch production.

Could Tainan host a future 1nm fab?

Taiwan's NSTC Minister Wu Cheng-wen revealed plans for a new science park in Tainan to support 1nm technology. Development could begin in 2027.

Liberty Times, citing Wccftech, reported that the park could house a future TSMC 1nm fab.

Wu did not name TSMC. The fab assignment is therefore a reported possibility, not a confirmed project.

The 1nm roadmap and mature-node restructuring point in opposite directions. Samsung plans to move investment toward advanced 12-inch production, while TSMC is reducing direct involvement in 8-inch manufacturing.

Under TrendForce's outlook, global capacity contracts through the first half of 2027, leaving mature-node buyers with fewer alternatives and making redesign costs more consequential as Samsung exits and TSMC restructures.