Jul. 04, 2025 –
Samsung Electronics’ foundry division is struggling to secure large orders from major tech companies for its advanced sub-3 nanometer chip processes. While yield rates for the 2nm and 3nm nodes both exceed 40%, making them sufficient for commercial production, overall chip performance including power efficiency is reportedly falling short compared to competitors such as TSMC. Samsung has reportedly been conducting evaluations of its 2nm process with Nvidia and Qualcomm.
According to industry sources on July 4, Samsung Foundry is now focusing on process optimization to improve chip performance. The company plans to delay mass production of its 1nm node by about two years and concentrate on enhancing both sub-3nm technologies and existing key processes. An industry official said, “Samsung is testing GPU performance with Nvidia, but progress is slower than TSMC,” adding, “The volume of products being evaluated with Qualcomm is also limited, so it is unlikely to help profitability.”
Samsung had planned to launch its 1.4nm process in 2027, but the timeline is now expected to slip to 2029. In the meantime, the company is refining its second-generation 2nm process (SF2P) and aims to begin mass production of a third-generation version (SF2P+) next year, with over 20 percent improvement in performance. Unlike TSMC, which has secured major orders from Nvidia, AMD, Apple, and Qualcomm, Samsung currently relies on its System LSI division and a few domestic and overseas startups for foundry demand.
Samsung is also working to win new orders with its SF4U process, an upgraded 4nm node with about 20% improved power efficiency. However, Samsung’s 4nm, 5nm, and 7nm nodes have been seen as underperforming compared to TSMC’s. To stay competitive, Samsung is offering prices that are about 30% lower than TSMC’s, with current yield rates exceeding 70%. But as TSMC consolidates its dominance in the sub-3nm market, competition in older nodes has intensified due to price cuts...