The CSOP Samsung 2x Long ETF (07747) narrowed its decline to nearly 2% on the day. As of the latest trading, it was down 1.74% at HKD 65.5, with a trading volume of HKD 953 million. According to market reports, Samsung Electronics' foundry capacity utilization is currently estimated to be between 70% and 80%. Given the existing order backlog and ongoing contract progress, the possibility of reaching full capacity within the year is "almost certain."
During its second-quarter earnings call, Samsung Electronics stated that utilization rates across all process nodes improved compared to the same period last year, with advanced processes below 8nm already reaching "maximum levels." The company also expects order volume for its 2nm projects to more than double year-over-year in 2025. While Samsung noted it is difficult to pinpoint the exact timing for a turnaround to profitability, it expressed confidence that this will be achieved "in the near future."
Notably, according to Samsung Electronics' plans, long-term contracts are expected to cover approximately 60% to 70% of its DRAM and NAND capacity, with the remaining 30% to 40% reserved for spot market sales. This strategy is designed to balance the stability of long-term contracts with the flexibility to capture price increases in the spot market. Korea Investment & Securities (KIS) believes this indicates that Samsung is gradually establishing a new memory business model centered on order-driven production.
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