Samsung Electronics: From foundry underdog to technology powerhouse — A turnaround in motion

Samsung Electronics is approaching a rare inflection point — the kind that combines cyclical tailwinds with structural breakthroughs. For years, the company’s semiconductor business has operated under the long shadow of TSMC in foundry, and Sony in image sensors, with market perception clouded by execution inconsistencies.

Now, a confluence of financial recovery, technological advances, and landmark customer wins is setting the stage for a sustained rebound that could reframe Samsung’s role in the global semiconductor hierarchy.

Financial recovery in motion
After a prolonged earnings trough, early signs of a turnaround are becoming unmistakable. Samsung should deliver an operating profit of at least KRW 8.5 trillion in the third quarter of 2025, even if HBM earnings remain flat sequentially. 

This improvement stems from faster-than-forecast commodity DRAM price hikes, higher utilization rates in its foundry business, and strong seasonal contributions from its Galaxy Fold 7 and Samsung Display operations. The removal of a one-off provisioning drag from 2Q also sets a low base for growth comparisons.

Looking forward, the visibility into 2026 is improving, with earnings supported by the expansion of D1c process capacity into mobile applications, the shift to LPDDR6 and SOCAMM, and the ramp of Apple’s and Tesla’s new contracts. Additional gains from iPhone foldable panels, coupled with a recovery in large-scale foundry demand, point to an operating profit forecast rising by 13% from KRW 35 trillion to KRW 39 trillion.

Technology edge — from wafer to panel-level advanced packaging
Samsung’s push into panel-level System-on-Panel (SoP) packaging marks a step-change in advanced integration capabilities. The 415mm × 510mm panel format allows for far larger integrated systems than conventional wafer-based packaging, enabling multiple ultra-large die without the need for a PCB substrate or silicon interposer.

By using an RDL redistribution layer for die-to-die communication, Samsung can accommodate two 210mm × 210mm-class chip systems on a single panel — ideal for AI accelerators and high-bandwidth systems. This could put Samsung in a strong position to win Tesla’s third-generation data center AI system integration order, direcly competing with Intel’s EMIB derivative processes.

Winning back big tech — Apple image sensor win after a decade
Samsung’s re-entry into Apple’s supply chain after a decade carries major symbolic and strategic weight. This win breaks Sony’s long-standing hold over Apple’s CIS supply, and opens the possibility for future procurement contracts in camera modules and other components.

The three-layer wafer stacking technology in these sensors will reduce pixel size while minimizing interference, allowing Apple to push imaging quality forward without increasing device thickness. With Apple’s supply diversification goals aligning with Samsung’s U.S. manufacturing capabilities, this foothold could grow rapidly.

-- -- Kristian Castellano, Director of Marketing at The Information Network, USA.