If Samsung Electronics' foundry business recovers, who will be the beneficiary?

●If Samsung Electronics' foundry business recovers, who will be the beneficiary?

1. Samsung Electronics Foundry Status

• As of Q3 2024, the market share stood at 9.3%, a wide gap from 64.9% of TSMC, the number one player

• Accumulated operating loss is estimated to have exceeded KRW 2 trillion by Q3 2024

• It introduced the world's first gate-all-around (GAA) technology in the 3-nanometer process, but it is struggling with yield problems

2. Change and Hope

• In 2025, the foundry business manager was replaced by Han Jin-man through the appointment of regular presidents

• President Han Jin-man is expected to focus on strengthening global customer responsiveness based on his experience in the U.S

• For the first time, a CTO position at the level of president was established in the foundry division and Nam Seok-woo was appointed

• Recently, the yield of the 4-nanometer process has exceeded 70%, and the yield of the 3-nanometer process has also exceeded 40%

• It plans to introduce the 'SF2Z' process by 2027 that applies BSPDN, a rear power supply technology, to the 2 nano process

• The 2-nano process is planned to start mass production in 2025, and a new foundry plant in Taylor, U.S., is expected to start operation in 2026

3. Customer Sales Status

• Successfully Wins 2-Nano-Based AI Accelerator Order From Japanese AI Semiconductor Startup Freeford Networks (PFN)

• A domestic AI semiconductor company has decided to produce next-generation NPU through a 2-nanometer process

• Recently, there's news that Nvidia and Qualcomm are considering using Samsung Electronics' 2-nanometer process on the grounds that TSMC's 2-nanometer wafer price is too high

4. beneficiary company

• DSP - Gaon Chips, AD Technology, CoAsia, Semi-Five (Emergency)

• IP - Open Edge Technology, Chips & Media

• Parts - EUV Pellicle, EUV Blank Mask

• Substrate - Samsung Electric Co., Daedeok Electronics Co., Ltd

• Testing - Dusan Tessna (CIS, SoC Test), Nepatharc (PMIC, DDI, SoC Test), Reno Industrial (Socket)

• Materials - Dongjin Semikem (EUV PR), Solbrain (acetic acid etchant)

• AVP EQUIPMENT - Eotechnics, PSK Holdings, YC, PARK SYSTEMS, Techwing

• EUV equipment - HPSP (high-pressure hydrogen annealing), Oros Technology (overlay instrumentation equipment), FST (mask pattern inspection equipment, pellicle attachment equipment)