Samsung Aims to Stabilize 2nm GAA Production by Q2 2025, Full-Scale Manufacturing to Begin in H2 2025 to Secure Major Orders

In its Q1 2025 earnings report, Samsung outlined its strategic focus on advancing its foundry operations, particularly emphasizing the development of the 2nm Gate-All-Around (GAA) process. Although Samsung has not disclosed the specific phase of its next-generation technology, the company announced plans for full-scale production to commence by the latter half of 2025. This timeline is crucial as Samsung aims to attract key clients in a bid to compete more effectively with TSMC, which recently began accepting orders for 2nm wafers.

Potential Partnerships and Production Goals

While details regarding specific customers for Samsung’s 2nm GAA wafers remain under wraps, reports suggest the company is engaged in discussions with Qualcomm. Facing challenges with its existing 3nm GAA technology, Samsung is determined to advance the development of its 2nm solutions. During the testing phase of the Exynos 2600, yield rates reached approximately 30 percent. Samsung shared critical insights during its earnings announcement, reaffirming its dedication to this cutting-edge process.

Earnings for the Foundry Business were muted due to sluggish seasonal mobile demand, inventory adjustments and stagnant fab utilization. However, the Business focused on the 2nm Gate-All-Around (GAA) process, improving yields and stabilizing the line while keeping the program on schedule, while also securing additional sub-5nm orders, specifically the 2nm and 4nm nodes for AI and HPC applications.

In Q2 2025, the Business will stabilize its 2nm process production and drive earnings improvement by actively addressing strong mobile and automotive demand in the United States. Looking ahead to H2 2025, the Foundry Business aims to start 2nm mass production and secure major 2nm orders and strengthen its specialty process portfolio on mature nodes.

For those who closely monitor Samsung’s quarterly earnings, the company’s ongoing commitment to launching next-generation technologies may seem familiar, yet results have often been less than successful. However, the 2nm GAA technology offers a glimmer of optimism, particularly if talks with Qualcomm yield a positive outcome, paving the way for the Snapdragon 8 Elite Gen 2 to drive Samsung’s flagship series in 2026.

In a proactive effort, Samsung has reportedly begun installing the necessary equipment for the 2nm GAA production line at its ‘S3’ chain in the Hwaseong facility, with analysts projecting that the company has around 10 months left to initiate mass production. We will continue to monitor this development and provide updates on Samsung’s progress as we approach the scheduled production timeframe.

News Source: Samsung

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