Samsung's foundry losses seen narrowing nearly 42% in 2026 on surging HBM4 base die orders
Samsung Electronics (005930.KS) expects its foundry and System LSI businesses' combined operating loss to narrow by 42% in 2026, from 6.74 trillion won in 2025 to 3.92 trillion won, driven by surging demand for HBM4 base dies. Analysts project Q3 losses to shrink to 777 billion won, with HBM4 revenue growing over threefold quarter-over-quarter. Samsung has raised 4nm pricing and secured collaborations, including a $200 billion deal with Broadcom.
How this was made
The 30-second read
Why it matters
The projected loss reduction suggests a shift from a loss‑making to a potentially breakeven or modestly profitable foundry business, which could re‑rate the stock.
Market read
First‑time projection of a sizable loss reduction for Samsung's foundry, driven by HBM4 demand, may influence investor positioning in the semiconductor sector.
What to watch
Potential supply‑chain constraints for 4nm lines and competition from TSMC could temper the projected improvement.
Background
Samsung Electronics integrates memory, foundry, and advanced packaging, positioning it to capture AI‑driven HBM4 demand.
Ticker impact
Samsung Electronics' foundry operating loss is projected to narrow ~42% YoY in 2026 as HBM4 base‑die demand lifts utilization and pricing.
likely upward pressure as the market prices in reduced losses and higher pricing power.
The forecast shows a substantial reduction in losses and higher pricing, which historically supports share price appreciation.
Market effects
Positive signal for the semiconductor foundry sector as HBM4 demand grows.
May improve perception of South Korean tech exporters.
Highlights broader AI‑driven memory demand affecting global chip supply chains.
Counterpoint
If external advanced‑node orders fail to scale, loss narrowing may stall, limiting upside.
Key entities
- companySamsung Electronics
Korean semiconductor giant with integrated device manufacturing.
- companyBroadcom
Partner in a $200 bn‑scale MOU for HBM4 supply and advanced packaging.
