Samsung shifts focus on improving 2nm yield to regain momentum in the foundry business
Samsung faced multiple setbacks with its 3nm and 5nm processes, resulting in a significant drop in market share and revenue. Despite being the second-largest foundry in the world, it continues to lag behind industry leader TSMC. As a result, Samsung is exploring different strategies for its cutting-edge 2nm process. It recently delayed the mass production plan of its more advanced 1.4nm node from 2027 to 2029.
And now, Samsung has made changes to its investment plans for future 1nm node development, according to a report from Chosun. The Korean firm made this decision based on internal reviews by Samsung’s Business Support Task Force and Global Research team. The company expects that AI chip makers in the US will mainly use the 2nm node for the next 2 to 3 years rather than the risky 1nm process.
As a result, Samsung is trying hard to secure deals for the 2nm process with key US clients. However, without stable and competitive yields, it will be difficult for the firm to meet customer expectations and win large orders. While TSMC has already achieved a 60% yield for its 2nm process, Samsung is reportedly still below 30%.
Industry analysts believe that Samsung Foundry’s future depends on whether it can reach a 60-70% yield for its 2nm node within six months and meet customers’ performance and pricing demands. If it fails, TSMC could once again win all the major clients in the 2nm era. Meanwhile, Samsung is gearing up to start mass production of 2nm chips at its Taylor plant next year. So, it’s crucial for the company to secure large orders in the coming months.