[News] Samsung’s 8-Inch Factory Halts 30% of Machines, Expected to Restart by Year-End

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According to a report by Taiwan’s TechNews, Samsung Electronics’ semiconductor foundry division, Samsung Foundry, has been operating at less than 50% utilization rate as of the second quarter due to weak demand for 8-inch wafer foundry services. Industry sources have revealed that Samsung Foundry has already halted operations on 30% of its equipment, but with further inventory reduction expected, there is a possibility of restarting these machines by the end of the year and resuming production in the first quarter of the following year.

Previously, South Korean media outlet The Elec reported that the IT industry’s demand is currently low, leading South Korean wafer foundries to reduce prices for 8-inch wafer services by 10%. As of the second quarter, both Samsung Foundry and other South Korean wafer foundry companies like Key Foundry and SK Hynix System IC, a subsidiary of SK Hynix engaged in foundry operations, have been operating at capacity utilization rates ranging from 40% to 50%.

8-inch wafer services primarily manufacture components such as power management ICs, panel driver ICs, and microcontrollers. Given the uncertain demand for consumer electronics products, Samsung Foundry has decided to halt operations on 30% of its equipment as a cost-saving measure. However, market expectations suggest that the overall manufacturing and semiconductor industries have undergone more than a year and a half of inventory adjustment, and there is hope for inventory replenishment by the end of the year in the supply chains of three major sectors: smartphones, PCs, and consumer electronics.

According to industry sources, Samsung Foundry plans to restart the halted 8-inch wafer equipment by the end of the year and aims to resume full production in the first quarter of the next year. However, the revival of consumer product demand has not yet shown clear signs, and whether the restart will proceed as expected remains to be observed.

(Photo credit: Samsung)