Seoul, June 11 -- Samsung Electronics' long-struggling foundry business is showing signs of a rebound, as improving yields, rising utilization and a string of high-profile AI chip projects raise prospects for a possible return to profit as early as the third quarter.

According to a report by The Korea Herald, the momentum is being driven by Samsung's push to turn its combined strengths in logic, memory and packaging into an edge in custom artificial intelligence chips, with tight capacity at TSMC giving global tech customers more reason to diversify suppliers.

Earlier this week, Samsung Electronics co-CEO and chip chief Jun Young-hyun met with Nvidia CEO Jensen Huang in Seoul to reinforce foundry cooperation, underscoring how the Korean...