Samsung Exit Tightens Supply of Mature Chips
Samsung's phased exit from 8-inch wafers by 2030 is an announced plan that could push global output down and raise prices.
Updated on Nov. 2, 2026 in Semiconductors
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Samsung has told customers it will fully exit the 8-inch foundry business by 2030, stopping orders for new 8-inch products in 2026 and closing one of its three 8-inch fabs by the end of that year. This is an announced corporate plan being executed in phases, not a settled outcome.
Why it matters
The exit reflects Samsung concentrating its resources on advanced manufacturing processes built on 12-inch wafers, leaving older-node capacity to fall away. Because 8-inch lines make the mature chips used in power management, display drivers, and image sensors, the closure removes supply from a segment that many fabless designers still depend on.
The 8-inch wafer is an older, smaller manufacturing format than the 12-inch wafers Samsung is prioritizing for advanced processes. Industry experts estimate that combined cuts from TSMC and Samsung could lower global 8-inch wafer output by 2.4% year on year in 2026, a projection rather than a measured result.
The players
Samsung Electronics
South Korean chipmaker that operates both memory and foundry businesses and is moving its foundry capacity toward advanced 12-inch wafer processes.
TSMC
Taiwanese contract chip manufacturer, the world's largest foundry, which is also scaling back its own 8-inch wafer production.
DB HiTek
South Korean specialty foundry reportedly allocating substantial 8-inch capacity to existing customers after Samsung's exit.
SK Keyfoundry
South Korean foundry reportedly allocating substantial 8-inch capacity to existing customers after Samsung's exit.
The details
Samsung is shutting down its 8-inch production lines in phases, beginning with the closure of one of its three fabs, and it shut lines producing power semiconductors, display driver ICs, and image sensors in April. Those 8-inch facilities previously manufactured display driver ICs (DDIs, the chips that drive pixels on a screen), power management ICs, and microcontrollers. Samsung's stated reason is to concentrate resources on advanced processes that run on 12-inch wafers, the larger format that yields more chips per production pass.
Timeline
January 2026: Samsung decided to close one of its three 8-inch fabs.
April 2026: Samsung shut down 8-inch lines for power, DDI, and image sensor chips.
2026: Samsung stopped accepting orders for new 8-inch products.
End of 2026: Scheduled closure of one of the three 8-inch fabs.
End of 2030: Samsung plans to shut down all of its 8-inch production.
The Tech Race
Samsung's exit sets it apart from TSMC, which is only scaling back its 8-inch output rather than leaving the format entirely. Chinese foundries are seen as the likely beneficiaries of the capacity gap, which places the closures inside a broader competition over mature-node manufacturing.
Fabless companies that design chips for power management, display drivers, and image sensors may face tighter supply and rising prices for 8-inch parts as Samsung stops accepting new orders. The source does not give a price figure or confirm how quickly alternative capacity from DB HiTek, SK Keyfoundry, or Chinese foundries will become available.
The takeaway
Watch whether the expected 2.4% decline in global 8-inch wafer output materializes in 2026 and whether DB HiTek and SK Keyfoundry can absorb Samsung's former customers. Calls within South Korea's chip industry for Samsung to delay the closure are also worth tracking, since any reversal would change the supply outlook.
What happens next
Samsung's scheduled closure of one of its three 8-inch fabs is set for the end of 2026, and its full exit from 8-inch production is planned for the end of 2030.
Further reading
For broader context on how chipmakers are dividing production between mature and advanced nodes, explore our Semiconductors coverage.
Source note: This article includes information reported by Digital Watch Observatory.
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