Samsung's Comeback on Mature Nodes

Since June, Samsung Electronics has experienced a notable recovery in utilization rates at its mature node production lines. These lines, previously a weak link in Samsung's foundry business, have now reached their highest operational levels in recent memory, according to Trendforce. With the increased demand for 4nm, 5nm, and 7nm technologies, Samsung appears to be turning the tide against its recent operating losses.

What Drives This Demand?

Samsung's revival can be attributed to a surge in orders for several key products. Among these are Samsung's sixth-generation High Bandwidth Memory (HBM4), Chinese companies looking for cryptocurrency mining chips, and Google's mobile application processors (APs). Furthermore, reports indicate that Nintendo has chosen Samsung to manufacture the main chip for its Switch 2, utilizing Samsung's 8nm process. This collaboration with Nintendo not only signifies a strategic win but also boosts Samsung's utilization rates further.

A Significant Financial Turnaround

The increased demand for mature nodes signals a potential financial turnaround for Samsung's foundry business. Previously, the company posted a 94 percent year-over-year decline in operating profit for its foundry sector in Q2 2025 as reported by Wccftech. The low utilization rates at mature nodes were largely to blame for this downturn. However, with the current resurgence in production, these nodes could alleviate some financial pressure.

Future Prospects: Advanced Node Momentum

While the focus has been on mature nodes, Samsung hasn't taken its eye off its advanced node ambitions. Recently, it struck a significant 16.5 billion USD chip foundry deal with Tesla to produce next-generation Full Self-Driving (FSD) AI6 chips at its Texas facility, according to Reuters. This indicates that while mature nodes are garnering attention now, Samsung is also steadily building momentum to cement its place in the advanced node segment.

Conclusion

Samsung Electronics is making noticeable progress in overcoming previous challenges within its mature node production lines. The company is leveraging partnerships with influential players such as Nintendo and Tesla, indicating a robust strategy for both immediate recovery and long-term growth. As the industry landscape evolves, Samsung's dual focus on mature and advanced nodes positions it well to meet varying market demands. As it stands, the resurgence in mature node production could very well be a game-changer for Samsung's foundry business.