The previous coach of the New York Giants, Invoice Parcells, as soon as mentioned “You’re what your document says you might be.” Nicely, when you’re Samsung Foundry that is not good. TSMC is the world’s main foundry with a 65% market share and a star-studded shopper lineup that features
Apple, Nvidia, MediaTek, Qualcomm, and even Intel to call a number of. Whereas Samsung Foundry at the moment has a market share of roughly 18%, ok for second place after TSMC, its lead over the third-place foundry has been slipping.
Regardless of its incapacity to acquire an excessive ultraviolet lithography machine (U.S. and Dutch sanctions, you recognize), China’s SMIC is in third place and was simply 3.3 share factors behind Samsung Foundry throughout the third quarter of this 12 months. That compares to the 5.8% lead Samsung Foundry held over SMIC throughout the second quarter of 2024.
Although Samsung Foundry was the primary to make use of Gate-all-around (GAA) transistors with its 3nm node (TSMC will begin utilizing GAA subsequent 12 months with its 2nm manufacturing), Samsung Foundry hasn’t seen a lot demand for its providers at 3nm. GAA transistors use vertically positioned horizontal nanosheets permitting the gate to cowl the channel on all 4 sides. This reduces present leakage and improves the drive present leading to chips with enhanced efficiency and higher power effectivity.
Samsung Foundry has a two-part plan to assist it battle TSMC and keep forward of SMIC. | Picture credit-Samsung Foundry
Samsung Foundry’s primary drawback is its low yield which suggests not sufficient of the chips produced from silicon wafers are usable. This hikes the price of the chips to purchasers since extra wafers are required to provide the amount of chips ordered. Samsung Foundry’s 2nm yield has reportedly been within the 20%-30% space whereas
TSMC’s check runs at 2nm have been within the 60% vary, nearer to the 70% usually required to begin mass manufacturing.
Samsung has promoted Han Jin-man to president of its company-wide foundry enterprise from his govt function associated to Samsung’s U.S. chip services. He has a “two-track technique” to assist Samsung Foundry tackle TSMC whereas holding off SMIC. Han’s plan is to extend Samsung Foundry’s yield on its 2nm manufacturing. That sounds simpler mentioned than performed, and he says the next yield will hold purchasers from leaving Samsung Foundry for TSMC. He additionally says that he’ll carry in additional enterprise for legacy nodes of 10nm and better in an effort to be sure that the fabs are operating nearer to full capability.
Whereas it appears like a plan, whether or not each elements may be completed just isn’t recognized. And even when each elements may be performed, it nonetheless is not recognized whether or not this plan could make Samsung Foundry extra of a menace to TSMC whereas permitting it to tug away from SMIC.
