Samsung Electronics plans to shut its remaining 8-inch foundry lines by the end of 2030, leaving customers hunting for scarce replacement capacity.
According to The Elec, the company has notified customers of the deadline as it redirects staff and equipment investment towards advanced processes using 12-inch wafers. Samsung had previously outlined a gradual retreat. Its earlier plan involved closing the S7 fab in Giheung by the end of 2026 while keeping S6 and S8 operating.
The decision extends that withdrawal to the entire business. Samsung stopped accepting orders for new 8-inch products this year, so the departure lounge was already open.
These facilities manufacture display drivers, power management chips, microcontrollers and image sensors using processes ranging from 65nm to 180nm. These components remain useful long after the marketing department loses interest in their transistor dimensions.
Customers identified by The Elec include Imagis, ABOV Semiconductor, Dongwoon Anatech, Silicon Mitus and LX Semicon. They must arrange alternative manufacturing or move their products to different processes.
Unfortunately, spare capacity is scarce. South Korea’s DB HiTek and SK Keyfoundry reportedly have much of their output committed to existing customers, limiting their ability to absorb Samsung’s departing business.
An executive at one affected chip designer told The Elec that securing additional production would require looking overseas.
Moving to 12-inch manufacturing presents another problem. Customers using 90nm to 180nm processes could face higher costs, redesign work and fresh product qualification.
Analogue chips can require specialised high-voltage processes, making migration considerably more complicated than shrinking a circuit and congratulating everyone on progress.
Taiwan reportedly has limited spare 8-inch capacity, while customer restrictions on Chinese-made semiconductors could prevent some designers from using Chinese foundries.
Some customers are preparing to stockpile chips, tying up cash and adding storage costs while postponing the inevitable production transfer.
Industry participants are calling for Samsung to delay the closures, with some arguing that government intervention may be needed because individual chip designers have little bargaining power.
