Samsung Lands Major $16.5 Billion Agreement for 2nm GAA Wafers, Boosting Competition with TSMC in Next-Gen Manufacturing Technologies

Samsung’s ambitious 2nm Gate-All-Around (GAA) chip process is poised for full-scale production, expected to commence in late 2025. Despite enduring significant setbacks in its semiconductor sector—including yield challenges that led several clients to turn to TSMC for their manufacturing needs—the company has recently marked a crucial turnaround. Reports indicate that Samsung has successfully secured a monumental $16.5 billion contract to provide its 2nm GAA chips, which is a significant step forward in restoring its market position.

Contract Duration and Future Prospects

The contract, which commenced on July 24, 2023, is projected to run until December 31, 2033, affording Samsung a vital opportunity to enhance its 2nm GAA production yields in the intervening years. The sustained growth of artificial intelligence technology indicates that demand for these advanced chips will persist, further bolstering Samsung’s prospects in the marketplace. Earlier assessments suggested yields hovered around 30-40%, which, while below optimal levels, still indicate progress compared to the challenges faced with the previous 3nm GAA technology.

While some reports forecast a two-year demand for 2nm GAA chips, this contract is strategic, potentially contributing approximately 7.6% to Samsung’s overall sales. It serves as a foundation upon which the company can build further advancements and relationships in the semiconductor industry.

Samsung is currently utilizing its 2nm GAA node to conduct tests for the Exynos 2600 chip, which was recently featured in Geekbench 6 benchmarks. Industry insights suggest this contract validates the competencies of the 2nm GAA technology, positioning Samsung to receive even more orders, thus narrowing the competitive gap with TSMC.

“This contract is very encouraging for Samsung Electronics, which has been struggling to stabilize yields and has lost the market to TSMC in advanced processes below 3nm. As this contract proves the yield and technological prowess of the 2nm process, expectations for additional orders are expected to increase.”

In addition to advancing its first-generation 2nm GAA technology, Samsung has reportedly finalized the initial design for its second-generation process. Furthermore, plans are underway to introduce a third-generation variant, dubbed ‘SF2P+, ’ within two years. This continuous development reflects Samsung’s commitment to refining its technology and securing a diverse clientele in a highly competitive landscape.

For further details, refer to the original article from Chosun.

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