Samsung Electronics says its contract chipmaking division expects its customer list to grow to about four times its 2017 size by 2029, as demand for high-performance computing chips reshapes its business. The company made the announcement at Korea Premium Week 2026, a major industry event.
The foundry business—which manufactures chips designed by other companies—has already tripled its client base since becoming an independent division in 2017. Now, executives believe it can expand again, driven by the same forces that have fueled the global AI boom.
What is driving the growth?
High-performance computing (HPC) is the key driver. These are the powerful chips used in data centers, AI training, and advanced scientific computing. Samsung expects HPC to account for 66% of its foundry work by 2029, up from just 5% in 2017. That's a dramatic shift toward more demanding, higher-spec chips.
This shift reflects a broader industry trend. As AI models become more complex, the demand for specialized, high-performance chips has exploded. Companies like Nvidia, AMD, and cloud providers are all scrambling for advanced manufacturing capacity. Samsung, along with rivals like TSMC and Intel, is positioning itself to capture a larger share of this lucrative market.
The move also aligns with the recent rebound in Asian AI stocks, as investors bet on continued growth in semiconductor demand.
What does this mean for Samsung's business?
For Samsung, the foundry business is a strategic priority. It competes directly with TSMC, the world's largest contract chipmaker, and Intel, which is also expanding its foundry services. A larger customer base and a higher mix of HPC chips would likely improve margins, as these advanced chips command premium prices.
However, the road is not without challenges. Building and operating advanced chip fabs is extremely capital-intensive. Samsung has invested heavily in its foundry capacity, but it still trails TSMC in market share and technology leadership. The company will need to win more high-profile customers and maintain its manufacturing yields to meet its ambitious targets.
There are also broader risks. The semiconductor industry is cyclical, and a downturn in demand could derail these plans. Geopolitical tensions, particularly around technology data leaks and export controls, add another layer of uncertainty.
What it means for investors
For everyday investors, this news is a signal that Samsung is betting big on the AI-driven demand for advanced chips. If the company succeeds, it could translate into stronger earnings and a higher stock price. But it's important to remember that these are projections, not guarantees.
Investors should also consider the competitive landscape. TSMC remains the dominant player, and any misstep by Samsung could allow rivals to gain ground. The foundry business is a long-term play, and results will take years to materialize.
For those holding Samsung stock, the announcement is a positive sign that management is confident about the future. But as with any investment, it's wise to diversify and not put all your eggs in one basket. The chip industry is notoriously volatile, and even the best-laid plans can be disrupted by unexpected events.
In the near term, investors will be watching Samsung's quarterly earnings and any updates on its foundry customer wins. The company's ability to execute on its technology roadmap will be crucial. If it can deliver on its promises, the foundry business could become a major growth engine for years to come.
