Samsung Enhances 2nm GAA Process with Focus on Yields and Cost Efficiency to Compete with TSMC; Chip Demand Expected to Last Four Years

TSMC’s Market Dominance and Samsung’s Aspirations

Currently, TSMC stands as the uncontested leader in the semiconductor industry, particularly as it prepares to escalate production of its leading-edge 2nm technology later this year. However, analysts believe that with adequate time and resources, Samsung may emerge as a formidable competitor with its own 2nm Gate-All-Around (GAA) technology. This journey will undoubtedly present significant challenges, but reports suggest that the Korean foundry is making noteworthy strides in improving its next-generation lithography capabilities. The surge in demand for chips produced using this node is projected to last at least four years, providing Samsung with ample incentive to expand its production abilities.

Samsung’s Cautious Strategy Towards 2nm GAA Technology

In light of ongoing hurdles with 2nm GAA yield levels, Samsung is adopting a measured approach as it seeks to establish itself as a viable alternative to TSMC. The company’s strategic decision to delay the launch of its 1.4nm process in favor of a concentrated focus on the 2nm GAA technology appears to be a sound one. As reported by Chosun, Samsung aims to develop multiple variations of this advanced process, which aligns with the growing demand for high-performance chips.

Industry insider @Jukanlosreve indicates that Samsung anticipates a sustained demand for 2nm GAA wafers for at least three years, during which the company will also prioritize addressing thermal management and optimizing performance metrics.

Navigating Current Challenges and Outlining Future Plans

Previously, Samsung implemented a ‘selection and concentration’ strategy aimed at enhancing the yield rates of its 2nm GAA process, aspiring to reach a yield rate of 70%.While this target still lags behind TSMC’s yield figures by 20-30%, it represents an improvement over the initially conservative estimates by Samsung’s management. The company is gearing up for mass production targeting the latter half of 2025, while simultaneously ramping up manufacturing capabilities at its Pyeongtaek plant and other locations.

While specific details regarding subsequent iterations of the 2nm GAA node remain sparse, industry speculation suggests that Samsung plans to launch second-generation processes, with preliminary designs already complete. Additionally, the third-generation iteration, anticipated to be branded as ‘SF2P+’, is on Samsung’s agenda for implementation within the next two years. However, it remains unclear whether production will commence at current manufacturing sites or if additional facilities will be created in the future.

Establishing Trust and Securing Market Orders

Given Samsung’s struggles in the past, earning the trust of potential customers will be paramount for future business success. The company may need to offer competitive pricing for its 2nm GAA wafers to attract new industry contracts. While the landscape may change over the next couple of years, establishing a foothold in the semiconductor market will require strategic efforts and a commitment to quality.

As it stands, Samsung’s advancements indicate that competition could eventually heat up in this sector; however, at present, TSMC remains the unrivaled leader in semiconductor manufacturing.

News Source: Chosun

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