January 24, 2025 – According to a report by South Korean media outlet SEDaily on the 21st, Samsung Electronics’ wafer foundry business has slashed its equipment investment budget for this year to only 5 trillion Korean won, marking a direct halving compared to the 10 trillion Korean won allocated in 2024, as per the annual plans outlined by the division.
During the investment peak from 2021 to 2023, Samsung’s wafer foundry business had an annual equipment investment scale of 15 to 20 trillion Korean won. In contrast, Taiwan Semiconductor Manufacturing Company (TSMC) invested a whopping 956 billion New Taiwan dollars in its wafer foundry equipment in 2024, four times the level of Samsung’s investment last year.
Samsung had already indicated in its third-quarter financial report in October 2024 that it anticipated a decline in capital expenditure for the year and that in 2025, it would maximize the utilization of its existing production infrastructure.

This year, Samsung’s wafer foundry business will prioritize investments in transitioning the S3 factory in Hwaseong from 3nm to 2nm processes and setting up a 1.4nm test line (with a monthly wafer throughput of 2,000 to 3,000 units) at the P2 factory in Pyeongtaek. Additionally, the company will make small-scale infrastructure investments in its wafer factory in Taylor, USA.
However, in terms of mass production, the transition of some production lines at the Hwaseong S3 factory from 3nm to 2nm cannot be considered a significant investment, as a considerable number of equipment can be reused.
South Korean media suggests that the continuous reduction in equipment investment budgets by Samsung Electronics is due to its inability to attract major customers for advanced process orders. Currently, the operating rate of Samsung’s 7nm to 4nm advanced process wafer factories in Pyeongtaek has decreased by more than 30%.