Samsung Electronics is doubling down on its foundry business, targeting improved yields for its 2nm manufacturing process to challenge industry leader TSMC. Despite leading the industry in adopting Gate-All-Around (GAA) technology, Samsung has struggled with commercialization and yield issues, contributing to its market share dropping below 10%. With TSMC achieving a 60% yield for 2nm chips and ramping up mass production for clients like Apple, Samsung is striving to stabilize its 2nm process and has recently secured orders from Japan’s PFN (Preferred Networks, Inc. a Japanese technology company founded in 2014, specializing in AI). With Han Jin-man leading the foundry division and Nam Seok-woo appointed CTO, Samsung’s new leadership and technical expertise signal a strategic shift in its efforts to close the gap with TSMC in the coming year.
My Take
Samsung’s ability to win even one major client from TSMC could reshape the competitive landscape. However, success hinges on demonstrating consistent execution in yield improvement and commercialization. A collaborative approach with key partners, such as major clients like Japan’s PFN or technology allies investing in advanced semiconductor applications, could be Samsung’s best shot at de-risking the adoption of its 2nm GAA process, regaining market share, and restoring confidence in its foundry division.
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Link to article:
https://www.chosun.com/english/industry-en/2024/12/10/BVVVMARVG5AFFPC7DDTE5JPWE4/
Credit: The Chosun Daily