Chip manufacturer Samsung is experiencing strong demand for its 4-nanometer process due to strong demand from the memory market, suggests a report in the Korean press. The details suggest that Samsung Foundry has secured orders that extend into 2027's production, and according to a source, the 4-nanometer process' stability has played a role in ensuring the strong demand.
Samsung Foundry Purportedly Experiencing Strong Demand For Its 4-nanometer Chip Manufacturing Process
Today's report is the second over the past couple of days that claims high yields for Samsung's 4-nanometer manufacturing process technology. This technology, dubbed SF4, began mass production in 2021 and has seen several iterations since then. These include the SF4E, SF4P, SF4X and SF4A, with the latest process being the SF4X technology that media reports suggest uses advanced back end processes and is catered to high performance computing (HPC) chips.
According to a source quoted by ZDNet Korea, better than expected stability has led to more orders from global customers for the 4-nanometer process. The source adds that not only do the orders extend into next year, but this tightness is due to fully packed manufacturing lines.
Samsung Reportedly Experiencing Strong Demand For HBM4 Memory
Additionally, high demand for HBM4 memory is purportedly playing a role in the tight capacity. Samsung announced in February that it had shipped the first commercial HBM4 memory products to customers and started mass production of the chips. The HBM4 memory uses the 4-nanometer process for its logic die, while the chips themselves are manufactured through the 1c process. Samsung's rival, SK hynix, showed off the industry's first 16-Hi HBM4 memory package at the Consumer Electronics Show (CES) in January this year.
An earlier report suggested that the 4-nanometer process had achieved 80% yield and was experiencing orders from major technology companies. Today's report also mentions NVIDIA, and adds that Google is also purportedly interested in the Korean firm's chip manufacturing process. The ZDNet's source adds that the strong orders have also contributed financial to Samsung Foundry, with the business expected to become profitable as soon as during the second half of this year.
However, the report adds that it is unclear whether the new orders will be directed towards Samsung's factories in Korea or its plant in Taylor, Texas. The costs incurred during setting up this facility have also created doubts about the profitability of the business as a whole with the profitability eventually depending on how they are accounted.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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