Samsung Foundry has big plans to lure customers away from its top rival, TSMC, by offering substantial incentives to top-tier sales talent. TSMC, the dominant force in the foundry market with a staggering market share of 65%-67%, has held its lead for years. Samsung Foundry, currently in second place, struggles with lower yields in advanced chip production, making it more expensive for customers to opt for Samsung over TSMC. Low yields mean fewer chips can be made at the same cost, which is precisely why Qualcomm left Samsung Foundry in 2022.
At the time, Samsung was manufacturing the Snapdragon 8 Gen 1, but its yield rate was only 35%, far behind TSMC’s 70% yield at the time.
This yield problem was a significant factor in Qualcomm’s decision to move its production from Samsung to TSMC. Qualcomm not only dropped Samsung’s foundry but also transitioned to TSMC to manufacture the Snapdragon 8+ Gen 1 and has since trusted TSMC for all of its flagship Snapdragon processors. TSMC’s impressive client roster includes giants like Apple, AMD, Nvidia, and MediaTek, further solidifying its position as the top foundry in the world.
However, Samsung Foundry may still have a chance to bounce back if it can improve its yields on the production of its own Exynos 2600 processor. This next-generation chip will be produced on Samsung’s 2nm process node, and if yields are up to par, it could power the Galaxy S26 and S26+ models, making them the first smartphones to feature a 2nm application processor. Interestingly, the Galaxy S26 Ultra will sport a 3nm Snapdragon 8 Elite 2 for Galaxy, which means Samsung’s flagship model won’t be part of the historic 2nm milestone.
Despite rumors that Samsung might spin off or sell its foundry division, the company is actively seeking to increase revenue by enticing TSMC’s customers. Samsung Foundry recently hired a former TSMC sales executive and is offering attractive compensation packages, with reports indicating that the company is willing to pay as much as $300,000 to U.S.-based sales executives. This is part of Samsung’s strategy to ramp up its market share, particularly in the U.S. Samsung’s U.S. operations are expanding rapidly, with a fab in Taylor, Texas set to begin mass production of 2nm chips in 2026. This investment is critical for Samsung as it needs a strong order flow to justify the cost of running the Texas fab.
In terms of salaries, a foundry sales director at Samsung can earn as much as $319,800, while senior managers in customer service can earn between $180,950 and $289,050. These figures are significantly higher than what Samsung pays for similar positions in South Korea. The goal is clear: attract the best talent to increase market share and maintain Samsung Foundry’s competitiveness. Meanwhile, TSMC is already shipping 4nm chips from its Arizona fab to clients like Apple and Nvidia, further cementing its foothold in the U.S. market. The U.S.-made chips are attractive because they are not subject to tariffs, making them even more appealing for companies like Apple, AMD, and Qualcomm.
Globally, China’s SMIC is the third-largest foundry, producing chips for Huawei, and is the largest in China. However, it still has a long way to go before it can challenge the dominance of TSMC and Samsung.