{"id":66511,"date":"2026-08-14T02:38:16","date_gmt":"2026-08-14T06:38:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/samsung-repurposes-rd-line-for-2nm-foundry-expansion-to-meet-ai-demand\/66511\/"},"modified":"2026-08-14T02:38:16","modified_gmt":"2026-08-14T06:38:16","slug":"samsung-repurposes-rd-line-for-2nm-foundry-expansion-to-meet-ai-demand","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/samsung-repurposes-rd-line-for-2nm-foundry-expansion-to-meet-ai-demand\/66511\/","title":{"rendered":"Samsung Repurposes R&#038;D Line for 2nm Foundry Expansion to Meet AI Demand"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Samsung Electronics (<a href=\"\/stock\/005970\">005970<\/a>)<\/strong> is reportedly repurposing <strong>Line 2<\/strong> at its <strong>NRD-K<\/strong> research fab in Giheung into a dedicated <strong>2nm foundry line<\/strong> to boost capacity for next-generation <strong>HBM5<\/strong> and custom <strong>cHBM<\/strong>.<\/li>\n<li>The facility will operate under a <strong>&quot;send-fab&quot; model<\/strong>, receiving wafers from other mass-production lines for specialized 2nm fabrication steps, with operations expected to begin by <strong>late 2028<\/strong>.<\/li>\n<li>This strategic pivot aims to address surging demand for <strong>AI infrastructure<\/strong>, specifically targeting the production of <strong>2nm base dies<\/strong> for <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> and other major AI accelerator clients.<\/li>\n<li>Samsung&#39;s foundry business targets <strong>100% capacity utilization<\/strong> by the second half of 2026, driven by a <strong>200% increase<\/strong> in 2nm project orders compared to the previous year.<\/li>\n<\/ul>\n<h2>Strategic Pivot to 2nm Production<\/h2>\n<p><strong>Samsung Electronics (<a href=\"\/stock\/005970\">005970<\/a>)<\/strong> is shifting its manufacturing strategy by converting an R&amp;D facility into a production-ready foundry line. The company is reportedly repurposing <strong>Line 2<\/strong> at its <strong>NRD-K<\/strong> advanced semiconductor research campus in Giheung, South Korea. Originally intended for research and development, this line will now focus on expanding <strong>2nm process<\/strong> capacity to meet the critical needs of the AI market.<\/p>\n<p>The repurposed line will function as a <strong>&quot;send-fab,&quot;<\/strong> a specialized operational model where the facility receives partially processed wafers from larger mass-production sites to perform specific high-end fabrication steps. This move is designed to accelerate the rollout of <strong>2nm base dies<\/strong>, which are essential components for <strong>High Bandwidth Memory (HBM)<\/strong>. Industry analysts suggest that repurposing an R&amp;D line typically indicates a process node has reached a level of maturity and demand that justifies shifting away from pilot testing toward volume production.<\/p>\n<h2>Targeting HBM5 and Custom AI Solutions<\/h2>\n<p>The primary objective of this capacity expansion is the production of <strong>HBM5<\/strong> and <strong>custom cHBM<\/strong> (Custom HBM). Samsung plans to apply its <strong>2nm Gate-All-Around (GAA)<\/strong> technology to the base dies of these next-generation memory chips. By utilizing a <strong>2nm<\/strong> logic node for the base die, Samsung aims to achieve a <strong>50% speed improvement<\/strong> and significantly enhanced power efficiency compared to current <strong>HBM4E<\/strong> standards.<\/p>\n<p>This integration of advanced foundry logic with high-performance memory is a key differentiator for Samsung against rivals like <strong>SK Hynix<\/strong> and <strong>TSMC (<a href=\"\/stock\/TSM\">TSM<\/a>)<\/strong>. By manufacturing both the memory layers and the logic base die in-house, Samsung can offer a more tightly integrated solution for AI accelerators. The company has already secured a major strategic collaboration with <strong>Broadcom (<a href=\"\/stock\/AVGO\">AVGO<\/a>)<\/strong>, estimated at over <strong>$200 billion<\/strong> through 2030, which focuses on <strong>2nm<\/strong> and below technologies for AI infrastructure.<\/p>\n<h2>Market Outlook and Capacity Goals<\/h2>\n<p>The decision to expand 2nm capacity comes as Samsung&#39;s foundry business experiences a significant recovery. The company expects its <strong>2nm project wins<\/strong> to more than double in 2026. Current utilization rates for advanced nodes (8nm and below) have already reached high levels, and the company targets <strong>100% utilization<\/strong> across its foundry business by the second half of 2026.<\/p>\n<p>While the <strong>NRD-K Line 2<\/strong> is relatively small in scale, its conversion provides a critical bridge for capacity until larger facilities, such as the <strong>Taylor, Texas fab<\/strong>, reach mass production. Samsung&#39;s roadmap now focuses heavily on refining the <strong>SF2 (2nm-class)<\/strong> family over the next three years, delaying the <strong>1.4nm<\/strong> node to 2029 to ensure maximum yield and commercial competitiveness for its current leading-edge offerings.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Samsung Electronics (005970) is reportedly repurposing Line 2 at its NRD-K research fab in Giheung into a dedicated 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