In the current world of chip manufacturing, reaching smaller process nodes like 3nm is a huge technological flex. Samsung has been a key player, pushing the boundaries with its 3nm processor production. However, despite being in production for three years, it seems Samsung Foundry is facing an uphill battle: finding buyers for its highly advanced 3nm chips.
Samsung Foundry’s 3nm low yield rate is putting off chip buyers
According to a report from the Korean media Chosun, the main reason behind the situation is a crucial factor in chipmaking: yield rates. Simply put, yield rate is the percentage of perfectly functional chips produced from a single silicon wafer. For Samsung’s 3nm process, the yield rate is reportedly hovering around a challenging 50%. This means roughly half the chips coming off the production line aren’t meeting quality standards.
Although it’s hard to believe, this is a huge improvement compared to last year’s yield rates. Samsung Foundry’s yield rate was as low as 10% at its worst. That said, the South Korean giant is still far behind its main rivals in this segment. For instance, TSMC has reportedly achieved yield rates of over 90% for its own 3nm process.
When chip buyers like Qualcomm, MediaTek, and even Google are making big decisions about their next-generation processors, reliability and consistent supply are paramount. A higher yield rate means more chips per wafer, fewer defects, and, ultimately, a more dependable supply chain. Even if TSMC’s prices are a bit higher, the assurance of quality and consistent delivery often makes it the preferred choice.
This situation has led to some significant shifts in the industry. For instance, Google, which previously worked with Samsung for its Tensor SoCs in Pixel phones, has reportedly shifted its orders for the upcoming Tensor G5 SoCs (and future ones) to TSMC. This move by a major client signals increasing doubts within the industry about Samsung’s 3nm foundry capabilities.
Samsung’s SoCs with older technologies still selling
It’s noteworthy that Samsung is certainly not out of the game. They continue to find success with more mature processes like 7nm and 8nm. However, the struggle at the most cutting-edge tech is a concern. They also face growing competition in these slightly older nodes from players like China’s SMIC.
The race to miniaturize chips is incredibly complex and capital-intensive. Achieving high yields at the most advanced nodes is a monumental task that requires precision, expertise, and consistent refinement. For Samsung, overcoming these 3nm yield challenges will be crucial for regaining market confidence and securing those coveted orders for the next generation of smartphones and other advanced devices.
