It seems like Samsung Foundry has shifted its focus from competing with TSMC to "sustaining" in the chip market, as the Korean giant reveals a pivotal adjustment in process roadmap.
Samsung To Now Shift Focus Towards 2nm & Below Processes To Increase Profitability Rates
Samsung hasn't been in the best of positions when competing in the chip industry, part of which concerns how the firm has been in the "relentless race" to catch up with TSMC in process technology, compromising on key areas such as yield rates. The Korean giant's previous processes, such as 3nm GAA, have been a victim of low yields, despite being a promising node in terms of technologies. Samsung Foundry has apparently realized this and has officially decided to shift focus towards improving profitability by increasing node perfection.
In a report by ETNews, Samsung's VP at the Foundry division announced that the firm would introduce a 1.4nm process in the market by 2029, almost two years after its original timeline. The plan is to focus on existing processes up to 2nm since the foundry division's operating losses are simply uncontrollable in their current state. The Korean giant has revealed that they have seen formidable progress with 2nm, and they plan on achieving stabilized yield rates, making the process suitable for adoption by the industry.
Apart from this, Samsung Foundry has now decided to reduce operating losses by refining older processes such as 4nm, 5nm, and 8nm, since, despite being years away from cutting-edge nodes, these processes have high demand in the market. Samsung has apparently realized that it cannot compete with TSMC, especially given the financial situation, and has instead decided to capitalize on existing resources to improve profitability rates. So, it is safe to say that at the very top of the chip markets, TSMC is left alone to compete in the race for cutting-edge nodes.
TSMC's A14 (1.4nm) process is said to arrive by 2028, a year earlier than Samsung, and by then, the Korean giant would likely be confined to 2nm and its derivatives. This step by Samsung Foundry is indeed a bold move, and one that will likely lead to the division's recovery, if executed properly.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
Follow Wccftech on Google to get more of our news coverage in your feeds.
