As 3nm GAA yields stabilize, Samsung Electronics fcuses on 2nm process to narrow TSMC's lead
By Chun Byung-soo, Kim Seo-young
Published 2025.05.13. 16:09
Samsung Electronics’ foundry division is reportedly nearing the final stage of evaluating its 2-nanometer (nm) process with Nvidia and Qualcomm as it pushes to secure next-generation chip orders. With yields for its 3nm process—the first to use gate-all-around (GAA) technology—continuing to stabilize, the company is now focusing on attracting customers for its enhanced 2nm platform. While TSMC has extended its lead by securing orders for Apple’s application processors and Nvidia’s AI accelerators, Samsung is narrowing the gap by diversifying its client base.
GAA technology improves chip performance by surrounding the transistor channel with gates on all four sides, reducing leakage current. In contrast, the earlier FinFET structure only enclosed the channel on three sides. Samsung was the first to bring GAA technology into mass production with its 3nm process but struggled with order shortages due to yield instability and difficulties in performance improvements.
According to industry sources on May 13, Samsung’s foundry division is about to start the final performance evaluations of its 2nm process for Nvidia’s GPUs and Qualcomm’s application processors (APs). The company is also producing its in-house Exynos 2600 chips in volume to boost yields. Current yields for the 2nm process are reportedly above 40%.
Analysts expect Samsung to accelerate improvements in the 2nm process, especially as yields for its 3nm GAA process have recently surpassed 60%. The 2nm process uses the same GAA technology as the 3nm process but with improvements aimed at better yield and performance. Initially, Samsung faced difficulties improving yields with its 3nm process, which led to the failure of the Exynos 2500 project under the System LSI division.
A senior Samsung official stated, “Being the first to adopt GAA in the industry, we had a steep learning curve. However, the experience we gained has become the foundation for stabilizing yields in our 2nm process.”
While Qualcomm and Nvidia are also working with TSMC on 2nm production, industry analysts suggest both companies are preparing to collaborate with Samsung to diversify their manufacturing options. Qualcomm plans to produce Snapdragon application processors (APs), while Nvidia is working with Samsung to ramp up GPU production.
“As geopolitical risks in the Taiwan Strait continue to rise, global tech giants can no longer rely solely on TSMC,” said a chip industry source. “Although Samsung’s initial 2nm yields were lower than expected, recent evaluations show more promising results.”
As TSMC gains an edge in sub-3nm technology, Samsung is expected to focus more on securing major tech orders. In its recent earnings call, TSMC announced that over 22% of its revenue now comes from advanced processes below 3nm, and demand for 2nm chips is already surpassing that for 3nm.
TSMC plans to produce 2nm chips both in Taiwan and at its Arizona fab in the U.S. The company has already begun mass production of Apple’s APs and will produce AMD’s next-generation AI accelerators at the Arizona site. TSMC’s 2nm yield is reported to be over 60%.
www.chosun.com
By Chun Byung-soo, Kim Seo-young
Published 2025.05.13. 16:09
Samsung Electronics’ foundry division is reportedly nearing the final stage of evaluating its 2-nanometer (nm) process with Nvidia and Qualcomm as it pushes to secure next-generation chip orders. With yields for its 3nm process—the first to use gate-all-around (GAA) technology—continuing to stabilize, the company is now focusing on attracting customers for its enhanced 2nm platform. While TSMC has extended its lead by securing orders for Apple’s application processors and Nvidia’s AI accelerators, Samsung is narrowing the gap by diversifying its client base.
GAA technology improves chip performance by surrounding the transistor channel with gates on all four sides, reducing leakage current. In contrast, the earlier FinFET structure only enclosed the channel on three sides. Samsung was the first to bring GAA technology into mass production with its 3nm process but struggled with order shortages due to yield instability and difficulties in performance improvements.
According to industry sources on May 13, Samsung’s foundry division is about to start the final performance evaluations of its 2nm process for Nvidia’s GPUs and Qualcomm’s application processors (APs). The company is also producing its in-house Exynos 2600 chips in volume to boost yields. Current yields for the 2nm process are reportedly above 40%.
Analysts expect Samsung to accelerate improvements in the 2nm process, especially as yields for its 3nm GAA process have recently surpassed 60%. The 2nm process uses the same GAA technology as the 3nm process but with improvements aimed at better yield and performance. Initially, Samsung faced difficulties improving yields with its 3nm process, which led to the failure of the Exynos 2500 project under the System LSI division.
A senior Samsung official stated, “Being the first to adopt GAA in the industry, we had a steep learning curve. However, the experience we gained has become the foundation for stabilizing yields in our 2nm process.”
While Qualcomm and Nvidia are also working with TSMC on 2nm production, industry analysts suggest both companies are preparing to collaborate with Samsung to diversify their manufacturing options. Qualcomm plans to produce Snapdragon application processors (APs), while Nvidia is working with Samsung to ramp up GPU production.
“As geopolitical risks in the Taiwan Strait continue to rise, global tech giants can no longer rely solely on TSMC,” said a chip industry source. “Although Samsung’s initial 2nm yields were lower than expected, recent evaluations show more promising results.”
As TSMC gains an edge in sub-3nm technology, Samsung is expected to focus more on securing major tech orders. In its recent earnings call, TSMC announced that over 22% of its revenue now comes from advanced processes below 3nm, and demand for 2nm chips is already surpassing that for 3nm.
TSMC plans to produce 2nm chips both in Taiwan and at its Arizona fab in the U.S. The company has already begun mass production of Apple’s APs and will produce AMD’s next-generation AI accelerators at the Arizona site. TSMC’s 2nm yield is reported to be over 60%.
Samsung targets 2nm orders from Nvidia, Qualcomm to boost foundry position
Samsung targets 2nm orders from Nvidia, Qualcomm to boost foundry position As 3nm GAA yields stabilize, Samsung Electronics fcuses on 2nm process to narrow TSMCs lead
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