Samsung Foundry Eyes Double 2nm Wins in 2026 as Broadcom Talks Signal Recovery

Samsung Signals Advanced-Node Momentum

Samsung Electronics' contract manufacturing arm is projecting a significant expansion of its 2-nanometer customer base, with design wins expected to increase by over 100% compared to 2025. Foundry business executive vice president Sukchae Kang disclosed the figures during the company's second-quarter 2026 earnings call, marking the first time Samsung has provided concrete metrics on its next-generation node traction.

The Seoul-based manufacturer is currently negotiating with Broadcom on several 2nm projects, alongside discussions with other large-scale customers. These talks represent the most tangible evidence to date that Samsung's advanced manufacturing capabilities are beginning to attract the tier-one design houses that have historically favored Taiwan Semiconductor Manufacturing Company.

Closing the Gap on TSMC

Samsung's foundry operation has struggled to compete with TSMC at the leading edge for the better part of a decade. The Taiwanese giant commands roughly 60% of the global foundry market and has secured virtually all of the marquee customers for 3nm and below, including Apple, Nvidia, AMD, and Qualcomm. Samsung's own chip design divisions have been among its foundry's largest customers, a structure that has raised questions about external customer confidence.

The projected doubling of 2nm wins suggests Samsung may be making headway in changing that perception. While the company did not disclose absolute numbers or name specific customers beyond the Broadcom discussions, the year-over-year growth rate implies a broadening pipeline beyond internal projects.

Profit Turnaround in Sight

Kang also indicated that a return to profitability for the foundry business is achievable in the near term, though he did not provide a specific timeline or financial targets. Samsung's contract manufacturing unit has been a drag on overall earnings, with the division reporting operating losses for multiple consecutive quarters as it poured capital into new fabrication facilities and process development.

The path to profitability will likely hinge on utilization rates at Samsung's advanced fabs. The company has invested heavily in 3nm capacity in Hwaseong, South Korea, and is preparing 2nm production lines at the same complex. Higher design win counts translate directly to wafer orders, which in turn improve fab economics by spreading fixed costs across larger production volumes.

The Broadcom Factor

Broadcom's involvement is particularly significant. The California-based semiconductor and infrastructure software company is one of the world's largest fabless chip designers, with annual revenue exceeding $50 billion. Its product portfolio spans networking, broadband, storage, and custom silicon for hyperscale data centers. Securing Broadcom as a 2nm customer would validate Samsung's process technology in the eyes of other potential clients and provide the kind of high-volume anchor tenant that justifies further capacity investment.

Broadcom has historically split its manufacturing between TSMC and Samsung, though TSMC has captured the lion's share of its most advanced nodes. Any expansion of Samsung's allocation would represent a meaningful shift in the competitive landscape.

Asia Foundry Dynamics

The competitive picture in Asia's foundry sector is shifting as geopolitical and supply-chain considerations reshape customer strategies. U.S. and European chip designers are under pressure from their governments and end customers to diversify manufacturing sources, reducing dependence on any single supplier or geography. Samsung stands to benefit from this diversification imperative, particularly for customers seeking an alternative to TSMC that can still deliver leading-edge performance.

Japan and India are also investing in domestic semiconductor capacity, but neither is positioned to compete at 2nm in the near term. That leaves Samsung as the only credible second source for advanced logic manufacturing, provided it can demonstrate consistent yield and performance.

Samsung's ability to convert this opportunity into sustained business will depend on execution. The company's 3nm rollout faced yield challenges and customer defections, and it cannot afford similar missteps at 2nm. The doubling of design wins is an encouraging signal, but the real test will come when those designs move into volume production and customers evaluate quality, delivery, and cost against TSMC's benchmarks.