Updated:Compared to its current focus on improving 2nm process technology, Samsung has postponed its original plan to mass-produce its 2027nm process by two years, initially planned for 1.4, a year ahead of TSMC. Mass production is now expected to begin in 2, a year later than TSMC's stated 2029 target. ETNEWS reports that Samsung's adjustment is primarily due to losses from declining foundry orders. The withdrawal of major customers in 2028 alone will result in losses of at least 1.4 trillion won (approximately US$2024 billion) for Samsung's advanced process foundry business.
Relevant data shows that Samsung's market share of advanced process foundry business has shrunk from 2024% in the first quarter of 11 to 7.7%, a decrease of nearly 30% in almost one year, but TSMC's advanced process foundry market share has increased to 67.6%.
On the other hand, Samsung's current 2nm process yield rate is only 30%, while TSMC's 2nm process yield rate has reached over 60%. In addition, Samsung's investment budget for advanced process technology has been reduced from 10 trillion won to 5 trillion won this year. This further highlights that Samsung's current focus on improving the yield rate of the 2nm process in advanced process development is not actively promoting breakthroughs in 1.4nm process technology. This means that the market for more advanced 1.4nm process technology will be ceded to TSMC.
Although Samsung once lagged behind in the competition of advanced process technology, it has recently accelerated its pace in the development of 2nm node technology.Wccftech website reportSamsung has successfully completed the basic design of its second-generation 2nm process "SF2P", which has the opportunity to be officially put into mass production in 2026, and is expected to be used in the new generation Exynos 2700 processor, which is expected to be used in Samsung's next Galaxy S27 series flagship mobile phone.
The first-generation 2nm process "SF2" has improved its yield rate, and the Exynos 2600 has entered trial production.
Currently SamsungThe first generation 2nm process "SF2"The yield rate has increased to over 40% and was first used in the trial production of Exynos 2600. This not only shows Samsung's continued advancement in process technology, but also lays the foundation for subsequent mass production.
The second-generation 2nm process "SF2P" has significant advantages in both performance and power consumption. Compared with the first-generation 2nm process, it can improve performance by 12% and reduce power consumption by 25%. At the same time, the chip area can be reduced by approximately 8%. These improvements will help increase the computing power of mobile devices while enhancing battery life.
Qualcomm reportedly joins the test
As Samsung's 2nm process technology matures, it has recently been reported that Samsung and Qualcomm have restarted cooperation negotiations.
Qualcomm is reportedly conducting mass production testing of its 2nm process technology with Samsung for several chips. If the test results meet expectations, Qualcomm is expected to re-initiate its dual-foundry strategy, maintaining its partnership with TSMC while also assigning some production orders to Samsung to spread cost and supply risks.
This strategy will further narrow the gap between Samsung and TSMC in advanced process technology competition. According to statistics, TSMC currently holds over two-thirds of the global wafer foundry market. If Samsung can successfully capture Qualcomm's orders through "SF2P," it will undoubtedly reshape the current market landscape.
Return to the key node of competition
Despite facing yield and supply schedule challenges in the early stages of its 3nm process, Samsung has not given up on competing in advanced process technology. Its transition from "SF2" to "SF2P" not only signifies an increase in process technology maturity, but also demonstrates its determination to return to the core battlefield of the foundry market.
In particular, Samsung has exclusively used Qualcomm processors in its annual flagship smartphones for two consecutive years. Its previously released Exynos processors have been used only in specific market segments or in specifications corresponding to mid-range products. This year, Google's Pixel 10 series, expected to feature the Tensor G5 processor, is reportedly manufactured by TSMC, dealing a significant blow to Samsung, suggesting that its advanced process technology is not favored by the market.
The processor recently announced is based on the second-generation 3nm GAA process and is positioned as a flagship platform.Exynos 2500It is expected to be used in the upcoming new foldable screen mobile phones Galaxy Z Fold7 and Galaxy Z Flip7, which shows that Samsung emphasizes that its semiconductor technology is still quite competitive, but whether it can be accepted by market users may still be difficult to say.
As to whether it can convince customers such as Quaclomm to use its second-generation 2nm process to use its foundry production resources and compete with TSMC in advanced process technology, it remains to be seen.
