Samsung Postpones 1.4nm Chip Production to 2029, Emphasizes 2nm and 4nm Advanced Foundry Technology
Samsung Electronics is making significant strides in the semiconductor industry with its 2nm (SF2) process family, utilising advanced technologies like Gate-All-Around (GAA) Field Effect Transistors (FETs). This strategic move is set to impact competition and semiconductor manufacturing strategies in various key ways.
## Competitive Edge
By adopting GAA FETs in its 2nm process, Samsung is positioning itself as a leader in the field of advanced semiconductor manufacturing. This technological advancement can attract major customers seeking cutting-edge chip manufacturing capabilities. The use of a 2nm process can lead to more efficient and cost-effective production compared to older node sizes, helping Samsung compete with other foundries like TSMC and Intel, who are also investing heavily in similar technologies.
## Semiconductor Manufacturing Strategy
Samsung's strategy involves diversifying its offerings and collaborating with other companies. For instance, rumours suggest Samsung might produce a variant of the Snapdragon chip using its 2nm process, which could be used in Samsung's own Galaxy series. The company is also heavily investing in advanced semiconductor technologies, including next-generation packaging and memory solutions.
Samsung's focus on achieving wafer volume targets for ≤2nm processes indicates a long-term commitment to advancing semiconductor manufacturing. The company aims to significantly increase wafer production by 2030 and 2035, which will require substantial capital expenditures and technological advancements.
## The Road Ahead
The real test for Samsung lies ahead in 2025, as mass production of 2nm chips draws near, and customer expectations are high. Samsung is also focusing on improving yields for its existing 2nm and 4nm processes as part of its renewed effort to court existing customers like NVIDIA and Google, who have drifted to rivals like TSMC in recent years.
Samsung Foundry is prioritising yield stability and competitiveness as it looks to win back these customers. The company unveiled the SF2P+ process, the third iteration of its 2nm technology, at its SAFE Forum for partners. Samsung is targeting a yield rate of around 50 percent in the coming months for its early 2nm GAA runs, with meaningful volumes likely by late 2025.
Meanwhile, the SF2P+ process, built upon an advanced optical shrink of SF2P, promises a 20 to 30 percent improvement in performance over previous generations. The SF2P+ process maintains the same transistor structure as the previous generation and is planned for mass production in 2026.
Samsung is also putting significant weight behind its 4nm offerings, especially the SF4U process, which is optimised for use cases in mobile application processors, automotive SoCs, and AI accelerators. The decision to delay the 1.4nm node in favour of refining 2nm and 4nm nodes reflects a broader understanding that success in advanced manufacturing is about delivering consistent results at scale.
Samsung's foundry strategy is shifting from a race for nanometres to a campaign for stability and customer confidence.
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Data-and-cloud-computing companies might be attracted to Samsung Electronics, as the integration of advanced technologies like Gate-All-Around (GAA) Field Effect Transistors (FETs) in Samsung's 2nm (SF2) process can lead to more efficient and cost-effective production. This could potentially position Samsung as a strong contender in the semiconductor industry, affecting technology competition in various key ways.
Samsung's focus on advancing semiconductor manufacturing and investing in technologies like next-generation packaging and memory solutions highlights their commitment to data-and-cloud-computing, a sector heavily reliant on constant technological improvements.
