Samsung is doing everything possible to reverse the complicated situation of its semiconductor division. The development of the Exynos 2600 chip appears to be a critical point for the company’s present and future. So, it is placing considerable importance on its 2nm process. In line with this, a new report claims that Samsung may have canceled work on the 1.4 nm manufacturing process.
According to tipster Jukanlosreve on X/Twitter, the South Korean giant may cancel development of its 1.4 nm process, at least for now. The post raises the possibility of closing the Samsung Foundry, although it is more of a question than a statement.
Samsung could cancel its 1.4 nm manufacturing process
There are no official reasons for the potential cancellation of Samsung’s 1.4 nm process—if it is true. However, some speculate on two reasons that could lead to this decision. One possibility is that Samsung Foundry’s business is experiencing such severe financial difficulties that it is becoming unsustainable. The other is that the company is putting all its effort into improving its 2nm processes.
Currently, the closure of Samsung Foundry seems unlikely. Even with all the problems the division has experienced in recent years, no leaks have pointed to such a possibility. On the other hand, multiple reports have highlighted the company’s hard work to ensure the successful development of the Exynos 2600 chip. A recent leak said that the company has set a new team specifically dedicated to this chip within Samsung Foundry.
The Exynos 2600 will be the South Korean giant’s first commercial 2nm chip. Samsung hopes its 2nm process will not be limited to producing this SoC but will also recapture the interest of big clients who have been lost in recent years. Therefore, the success of these wafers seems crucial for the company. It makes sense that the main focus is currently on the 2nm process.
The company could have rushed to develop advanced processes
Samsung seems to have wanted to rush things to gain a competitive advantage. TSMC, Samsung Foundry’s direct rival, is also focused on its 2nm process, and there is no news on sub-2nm developments yet. On the other hand, Samsung was already working on 1.4 nm even before completing 2 nm development and optimization. It seems like a smart decision to reallocate resources to focus on what’s important today.
Samsung’s 2nm production tests yielded a 30% yield rate. For initial tests, the yield rate figures are promising. However, TSMC is leading the way in this field. According to reports, TSMC’s 2nm wafer yield rate is as high as 60%. This means that, even now, Samsung’s biggest rival could profitably mass-produce 2nm chips.
It’s notable that TSMC recently reinforced its position as a global leader in the segment. Financial reports for Q4 2024 revealed that the company boasts a 67.1% share of the semiconductor production market.
