Samsung Foundry Halts Competition for Node Supremacy Against TSMC; 1.4nm Node Launch Delayed Significantly

Samsung Foundry appears to be reassessing its strategic direction, moving away from direct competition with TSMC and instead focusing on sustainable practices within the semiconductor market. This shift reflects a significant update to their process roadmap and operational priorities.

Transitioning to 2nm and Below: Enhancing Profitability

Samsung has faced numerous challenges while vying for supremacy in the semiconductor industry, particularly in its race to match TSMC’s advanced process technologies. This relentless pursuit has often led to compromises, particularly with yield rates. Historically, technologies like the 3nm Gate-All-Around (GAA) process have struggled with suboptimal yields, despite their promising prospects. Recognizing these hurdles, Samsung Foundry has chosen to pivot towards enhancing profitability through a focus on refining existing technologies.

According to a report by ETNews, a Vice President from Samsung’s Foundry division announced plans to introduce a 1.4nm process by 2029, a delay of nearly two years from the original timeline. The company is concentrating on improving yields and operational efficiencies within its current processes, particularly those at 2nm, as escalating operating losses have become unsustainable. Preliminary results indicate significant advancements with the 2nm technology, with Samsung aiming to stabilize yield rates to become competitive in the market.

Samsung's ambitious yield target for its first two generations of 3nm GAA processes

In addition to their efforts on newer nodes, Samsung Foundry is also working to enhance older technologies such as 4nm, 5nm, and 8nm processes. Despite being established technologies, these nodes continue to command strong demand in the marketplace. This strategic decision reflects Samsung’s understanding that under the current financial conditions, direct competition with TSMC in cutting-edge domains is not feasible. Instead, they are leveraging existing resources to drive profitability.

With TSMC projected to launch its A14 (1.4nm) process as early as 2028, a year ahead of Samsung’s timeline, the latter will likely focus significantly on the 2nm process and its derivatives by that time. This strategic adjustment from Samsung Foundry could be a critical turning point for the division, provided it is executed with precision and care.

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