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Samsung Foundry Accelerates Push for 2nm Process Amid Challenges

Company sets ambitious goals to compete with TSMC, despite financial and operational hurdles
South Korea
s 005930.KO Blue Chip 150 OM 60 Semicon 75 Tech 350
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Samsung Foundry is intensifying efforts to establish mass production facilities for its advanced 2nm semiconductor process, aiming to install a production line capable of handling 7,000 wafers per month at its Hwaseong plant by the first quarter of 2024, according to industry sources. The company also plans to set up a 1.4nm line at its Pyeongtaek 2 plant by the second quarter of next year, with production capacities of 2,000 to 3,000 wafers monthly, as part of its long-term roadmap toward mass production of 2nm in 2024 and 1.4nm by 2027.

These developments come as Samsung faces challenges, including poor yields in its 3nm processes and difficulties securing clients. The company’s delay in introducing equipment to its new Taylor, Texas facility until after 2026 underscores these obstacles. Samsung’s 3nm Exynos chip has encountered reliability issues, putting added pressure on the company to secure the 2nm process and catch up with its rival, TSMC.

Financial pressures are mounting, with Samsung Foundry reportedly posting a deficit of several hundred billion won in Q3 2024. Some experts suggest that spinning off the foundry division could help it overcome the crisis. Despite the challenges, Samsung continues to invest in sub-2nm technology, aiming to improve yields and attract key clients like Qualcomm and Preferred Networks.

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