Samsung's 1.4nm Production Challenges Raise Concerns About Future Plans
24 March 2025 路 Uncategorized 路
Source: 路 https://technews.tw/2025/03/17/samsung-may-abandon-1-4nm-process-technology-development/
Recently, Samsung鈥檚 foundry business has been the subject of considerable industry attention. According to a report by PhoneArena, Samsung's wafer fabrication yields have faced challenges for several years, particularly with its upcoming 3-nanometer process. These low yields led directly to delays in producing Exynos 2500 application processors (APs), prompting adjustments to Samsung鈥檚 strategies for the flagship Galaxy S25 series. Consequently, all models will now utilize Qualcomm Snapdragon 8 Elite chips instead of the originally planned mix that would have seen certain markets using high-end SoCs from both companies.
It is rumored that Exynos 2600 processors will be manufactured on Samsung鈥檚 2-nanometer process in 2025. Despite claims regarding overall yield improvements for its foundry business, reports indicate the test yields of this 2nm technology remain low at approximately 30%.
Samsung Foundry currently holds an 8.2% market share, significantly less than TSMC's dominant position with 67.1%. The latter boasts a broad customer base including Apple, NVIDIA, Qualcomm, MediaTek, Broadcom, and Intel鈥攁nd even as Intel develops its own foundry business, it still requires some production outsourced through TSMC.
Following the development of 2nm technology, industry leaders like TSMC, Samsung Foundry, and Intel are actively working on developing a 1.4-nanometer process. However, there is speculation that Samsung may consider abandoning this advanced node due to persistent yield issues鈥攁 potentially serious setback.
Generally speaking, increased transistor density leads to improved chip performance and energy efficiency; smaller processes enable denser transistor counts and reduced sizes. For example, Apple's A13 Bionic chip used in the iPhone 11 Pro Max was manufactured using TSMC鈥檚 7nm series process featuring over 85 billion transistors.
The upcoming A18 Pro chips for the iPhone 16 Pro and iPhone 16 Pro Max are expected to be produced on a second-generation of TSMC's 3-nanometer technology, reportedly exceeding 20 billion transistors鈥攄emonstrating how advanced processes can significantly enhance chip performance and efficiency.
Samsung Foundry continues to struggle with yield issues; if these challenges persist, the company may abandon efforts in leading-edge technologies and focus solely on specific mature nodes. This shift could mean all flagship and foldable phones from Samsung will utilize Qualcomm chips instead, potentially impacting phone pricing as using their own chipsets is more cost-effective.
Samsung Foundry鈥檚 pursuit of advanced processes faces significant obstacles; yield issues affect not only 3nm and 2nm technologies but also necessitate a reassessment of technical directions鈥攊ncluding whether to abandon the development of 1.4 nm technology altogether. Compared with TSMC, Samsung's foundry business exhibits clear gaps in both technological capabilities and customer base. Addressing these challenges effectively will be crucial for maintaining Samsung鈥檚 semiconductor industry position.
(Image source: Samsung)
It is rumored that Exynos 2600 processors will be manufactured on Samsung鈥檚 2-nanometer process in 2025. Despite claims regarding overall yield improvements for its foundry business, reports indicate the test yields of this 2nm technology remain low at approximately 30%.
Samsung Foundry currently holds an 8.2% market share, significantly less than TSMC's dominant position with 67.1%. The latter boasts a broad customer base including Apple, NVIDIA, Qualcomm, MediaTek, Broadcom, and Intel鈥攁nd even as Intel develops its own foundry business, it still requires some production outsourced through TSMC.
Following the development of 2nm technology, industry leaders like TSMC, Samsung Foundry, and Intel are actively working on developing a 1.4-nanometer process. However, there is speculation that Samsung may consider abandoning this advanced node due to persistent yield issues鈥攁 potentially serious setback.
Generally speaking, increased transistor density leads to improved chip performance and energy efficiency; smaller processes enable denser transistor counts and reduced sizes. For example, Apple's A13 Bionic chip used in the iPhone 11 Pro Max was manufactured using TSMC鈥檚 7nm series process featuring over 85 billion transistors.
The upcoming A18 Pro chips for the iPhone 16 Pro and iPhone 16 Pro Max are expected to be produced on a second-generation of TSMC's 3-nanometer technology, reportedly exceeding 20 billion transistors鈥攄emonstrating how advanced processes can significantly enhance chip performance and efficiency.
Samsung Foundry continues to struggle with yield issues; if these challenges persist, the company may abandon efforts in leading-edge technologies and focus solely on specific mature nodes. This shift could mean all flagship and foldable phones from Samsung will utilize Qualcomm chips instead, potentially impacting phone pricing as using their own chipsets is more cost-effective.
Samsung Foundry鈥檚 pursuit of advanced processes faces significant obstacles; yield issues affect not only 3nm and 2nm technologies but also necessitate a reassessment of technical directions鈥攊ncluding whether to abandon the development of 1.4 nm technology altogether. Compared with TSMC, Samsung's foundry business exhibits clear gaps in both technological capabilities and customer base. Addressing these challenges effectively will be crucial for maintaining Samsung鈥檚 semiconductor industry position.
(Image source: Samsung)