Full-scale production of its 2nm GAA process is not expected to start until the latter months of 2025, but Samsung’s near-endless woes in semiconductor manufacturing were well documented, with its poor yields forcing a multitude of customers to flock to TSMC in search of greener pastures. Luckily for the Korean foundry giant, it persevered through the tough times, with its efforts reportedly paying off because, according to the latest details, the company has secured a mammoth $16.5 billion deal where it will supply its 2nm GAA chips.
The contract period has already started and is expected to conclude in 2033, giving Samsung a significant breather as it looks to improve 2nm GAA yields in the coming months
With the AI boom expected to last for years, Samsung was previously reported to have delayed the production of its 1.4nm process, focusing its resources and manpower on 2nm GAA. Previous estimates have mentioned that the latter’s yields are in the 30-40 percent range, which is not ideal, but the company’s progress for this node is still miles better than the troubles it faced with the 3nm GAA technology.
Even though an earlier report stated that Samsung anticipates 2nm GAA demand to last up to two years, Chosun reports that the Korean firm’s contract period for the $16.5 billion deal will expire on December 31, 2033, with the agreement already inked from July 24. This figure is approximately equal to 7.6 percent of Samsung’s total sales.
However, we do not expect the company to begin full-scale production immediately, as it is currently utilizing its 2nm GAA node to test out the Exynos 2600, which was recently spotted on Geekbench 6’s single-core and multi-core tests. A source close to the industry has said that the latest contract proves the 2nm GAA’s capabilities, and that Samsung is expected to receive additional orders, bringing it one step closer to challenging TSMC.
“This contract is very encouraging for Samsung Electronics, which has been struggling to stabilize yields and has lost the market to TSMC in advanced processes below 3nm. As this contract proves the yield and technological prowess of the 2nm process, expectations for additional orders are expected to increase.”
In addition to the first-generation 2nm GAA process, Samsung has been reported to have completed the basic design of the second iteration, and is estimated to implement the third-generation, also known as ‘SF2P+,’ within two years, highlighting the company’s efforts in gradually improving this technology to secure a host of customers.
News Source: Chosun
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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