Samsung’s ambitious roadmap for advanced semiconductor manufacturing is hitting roadblocks, potentially derailing plans for its 1.4nm process node. The company’s struggles with 3nm production yields are forcing a reevaluation of its future chip fabrication strategy.
Current State of Samsung’s Chip Production
Samsung Foundry, the contract chip manufacturing arm of Samsung Electronics, has been working to catch up to industry leader TSMC. However, the company faces significant hurdles:
- Low yields on 3nm process node
- Delayed rollout of 3nm chips for mobile devices
- Declining market share (currently at 8.2% compared to TSMC’s 67.1%)
These issues stem from difficulties in perfecting Samsung’s gate-all-around (GAA) transistor technology, which is crucial for advancing to smaller process nodes.
The 1.4nm Node: A Fading Promise?
Samsung originally planned to begin mass production of 1.4nm chips (known as SF1.4) by 2027. This ultra-advanced node promised significant improvements:
- Increased number of nanosheets from 3 to 4
- Better current control and transistor speed
- Improved power efficiency
However, industry sources now suggest Samsung may postpone or potentially cancel the SF1.4 node due to ongoing manufacturing challenges.
Immediate Focus: Improving Existing Nodes
Rather than pushing ahead with 1.4nm development, Samsung appears to be shifting priorities:
SF3 (3nm) Node:
- Continued efforts to improve yields
- Possible use in upcoming Exynos 2500 mobile processor
SF2 (2nm) Node:
- Development continues
- Targeted for Exynos 2600 processor
SF4 (4nm) Node:
- Restarting some production lines
- Securing orders from Chinese companies facing US sanctions
Competitive Landscape
While Samsung struggles, its main rivals are making strides:
TSMC:
- Maintaining strong yields on 3nm process
- Attracting major clients like Apple and AMD
- On track with 2nm development (N2 node)
Intel:
- Aiming to regain manufacturing leadership
- Developing its own GAA technology (RibbonFET)
Potential Restructuring
Samsung’s foundry division may face significant changes:
- Possible reorganization of the entire unit
- Rumors of moving the Exynos chip design team to the mobile division
- Reevaluation of long-term manufacturing strategy
Industry Implications
Samsung’s challenges have broader implications for the semiconductor industry:
- Reduced competition in leading-edge chip manufacturing
- Potential impact on the availability of cutting-edge chips for various applications
- Questions about the feasibility of sub-2nm nodes for other manufacturers
The coming months will be crucial for Samsung as it navigates these manufacturing hurdles. While the company’s long-term roadmap remains uncertain, its focus on improving existing nodes could help regain lost ground in the fiercely competitive chip fabrication market.