The past few years haven't exactly been good for Samsung Foundry. It struggled to gain orders from major companies for its advanced processes. This led to unused production lines generating billions in losses.

The tide appears to have turned for the company as it sees sustained demand for legacy processes, while orders for its 2nm process are gradually picking up. This may allow the foundry division to generate over a billion dollars in operating profit next year.

According to reports out of South Korea, the company's foundry division has set an internal target to clear 2 trillion won or roughly $1.3 billion in operating profit next year. This would be made possible largely due to the orders from major companies, including Tesla, which signed a deal worth $16 billion for chip production last year.

This would be a remarkable return to financial health for the foundry division, as this would be the division's first full-year profitability in five years. Culmulative losses over these past few years have racked up in the billions as orders remained limited due to low yields on its advanced nodes.

Samsung Foundry has improved its competitiveness on the advanced processes, with yields stabilizing while demand expands for its mature nodes. Management is reportedly hopeful that they may achieve profitability as early as Q4 2026 with full-year profitability likely next year.