[News] Samsung Reportedly to Exit 8-Inch Foundry by 2030 as TSMC Also Cuts Capacity

What happened

According to The Elec, citing industry sources, Samsung Electronics has notified customers of plans to exit the 8-inch foundry business entirely by the end of 2030, redirecting workforce and equipment investments toward advanced 12-inch wafer processes. At its first-quarter earnings call in April, Samsung foundry vice president Kang Seok-chae outlined plans to gradually phase out 8-inch production lines for power semiconductors, DDIs, and image sensors; Samsung has also reportedly stopped accepting orders for new 8-inch products since the beginning of 2026. Samsung's 8-inch operations cover mature nodes from 65nm to 180nm (65nm, 70nm, 90nm, 130nm, 180nm) supporting DDIs, PMICs, MCUs, and image sensors, with mass production beginning at 180nm in 2000, 130nm in 2002, 90nm in 2006, and 70nm in 2011. South Korean fabless customers face limited alternatives: DB HiTek and SK keyfoundry are heavily committed to existing customers, Taiwan's 8-inch foundries have little spare capacity, and shifting to China could face end-customer restrictions on Chinese-made chips; moving to 12-inch wafers could raise manufacturing costs and require chip redesigns and renewed qualification. Per TrendForce, capacity cuts by Samsung and TSMC plus growing demand for AI-related power chips are expected to push average 8-inch utilization among the world's top 10 foundries to nearly 90% in 2026, up from around 80% in 2025, with utilization projected to remain above 80% as global capacity continues shrinking through the first half of 2027. Separately, per Economic Daily News citing industry sources, 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, involving capacity consolidation and equipment sales, having sold 8-inch equipment to Vanguard twice in recent years, while retaining its 8-inch business for strategic support. Also, per Liberty Times citing Wccftech, Taiwan's NSTC Minister Wu Cheng-wen revealed plans for a new science park in Tainan to support 1nm technology with development expected to begin in 2027; Wu did not name TSMC, but the report suggests the site could house its future 1nm fab.

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Source: TrendForce · 11/2/2026 · View original source