Samsung’s Next-Gen 1.4nm Manufacturing Process Cancellation Rumors: What’s Happening with Their Foundry Business?

In a significant development for the semiconductor industry, TSMC has reportedly widened its lead over Samsung in Q4 2024, boasting a commanding market share of 67.1% in the foundry sector. Meanwhile, Samsung has made progress with its 2nm Gate-All-Around (GAA) technology, achieving a 30% yield in its trial production. However, recent rumors suggest potential setbacks regarding Samsung’s ambitious 1.4nm process technology, indicating a possible reversal in their stride toward innovation.

Samsung’s Strategic Shift in Focus on Current Technology

Amidst challenges, a tipster has indicated that Samsung may have cancelled the 1.4nm node, but the motives behind this decision remain unclear. This could signal two potential scenarios: either the company’s foundry operations are struggling significantly, or they are redirecting efforts towards enhancing yield efficiencies in their current technologies, which need to be perfected before launching into mass production.

The Exynos 2600 chip, anticipated to debut its production phase in May, underscores Samsung’s intent to elevate the yields of its 2nm GAA technology. The successful launch of this flagship System on Chip (SoC) for the forthcoming Galaxy S26 series is pivotal not only for Samsung’s portfolio but also for attracting new clients to this lithography. Unfortunately, this focus may come at the expense of canceling the more advanced 1.4nm process, according to @Jukanlosreve’s commentary on X.

Market Dynamics: A Shift in Priorities

The rationale behind this strategic pivot remains speculative. It might stem from an effort to fortify production capabilities on existing nodes like the 3nm and 2nm GAA, which have yet to achieve sufficient performance benchmarks for large-scale rollout. While TSMC is committed to improving its 2nm yields—with trial productions reportedly hitting 60%—Samsung faces the challenge of catching up in this fiercely competitive foundry landscape.

Urgent: Samsung’s SF1.4 might be canceled.

Are they planning to shut down Samsung Foundry?

— Jukanlosreve (@Jukanlosreve) March 14, 2025

At this juncture, it appears neither Samsung nor TSMC is poised to pursue sub-2nm processes aggressively. Despite setbacks, it’s important to remember that for a conglomerate like Samsung, challenges in one division do not necessarily equate to a total retreat from the foundry sector. A company executive previously reinforced the commitment to retain the foundry business as a vital component of Samsung’s strategy. Industry stakeholders will undoubtedly hope for advancements in the near future, so it is essential to remain tuned for further updates.

News Source: @Jukanlosreve

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