[News] Despite 3nm Issues, Samsung Plans to Speed up 2nm/1.4nm Expansion Next Year

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Though still be struggling with low yield rates in 3nm, Samsung is reportedly ramping up its efforts to prepare for the mass production of 2nm and 1.4nm to compete with its longtime rival, TSMC. Citing industrial sources on Oct. 3^rd, Business Korea reveals that the South Korean foundry giant is introducing equipment at the Hwaseong plant to establish a 2nm production line, while it also plans to set up a 1.4nm line in its Pyeongtaek 2 plant next year.

According to the report, this initiative is in line with Samsung’s goal to mass produce 2nm in 2025 and 1.4nm by 2027.

In terms of the capacity expansion of 2nm, Samsung aims to install a capacity of 7,000 wafers per month by the first quarter of next year in its S3 foundry line at Hwaseong, Business Korea states. It is worth noting that the existing 3nm line at S3 is expected to be fully converted to a 2nm line by the end of next year.

Then, starting in the second quarter of next year, Samsung plans to set up a 1.4nm production line at the S5 facility in its Pyeongtaek 2 plant, with a capacity of approximately 2,000 to 3,000 wafers per month, according to the report.

Unlike the aggressive expansion for its advanced nodes in South Korea, Samsung’s foundry project in Taylor, Texas, seems to be in stagnant. The company had reportedly planned to begin mass production of below-4nm nodes there by the end of 2024, but this has somehow been pushed back to 2026, which reflects the possible yield issues regarding 3nm node with GAA architecture Samsung has been eager to solve, the report suggests.

Due to a decline in client orders, Samsung’s management has decided to convert the foundry line at its Pyeongtaek 4 plant into DRAM facilities, the report points out. Additionally, the Pyeongtaek 3 plant, which features a 4nm line, has decreased its scale of operation for the same reason.

Analysts cited by the report estimate that Samsung Foundry might incur a deficit of several hundred billion won in the third quarter of this year, underscoring the financial pressures the company is experiencing.

As the delay of the 3nm Exynos seems to be irreversible, securing the success of 2nm has become a top priority for Samsung. Business Korea indicates that the testing of Samsung’s 2nm will be conducted on the next-generation Exynos chip, codenamed “Tethys.” Evaluations may also be said to extend to chips from Qualcomm, Japan’s Preferred Networks (PFN), and Ambarella.

Read more

• [News] Samsung Reportedly Suspends Construction and Contract Plans for Pyeongtaek P4 and Taylor Plant 2
• [News] Samsung Reportedly Buckling Under Pressure, with Plans to Cut Overseas Workforce by Up to 30%

(Photo credit: Samsung)