Samsung’s foundry business has been facing difficulties with its advanced chip processes, particularly with its 3-nanometer production. According to a report from The Korea Times, the yield for Samsung’s 3nm process remained in the single digits until Q1 this year, causing delays in supplying engineering samples for its Exynos 2500 chipsets.

The same report notes that local analysts estimate Samsung’s yield for its 3-nanometer process improved to about 20% in the second quarter. Despite this progress, the yield rate is still significantly below the 60% threshold generally needed for mass production, creating challenges for the company in securing foundry orders.

Reflecting this situation, Samsung appears to have shifted its strategy for its newest facility, the P4 fab in Pyeongtaek, Gyeonggi Province. Instead of initially installing equipment for NAND and then moving to foundry products, Samsung is now prioritizing advanced DRAM memory production, such as high-bandwidth memory (HBM) chips. Industry sources cited by The Korea Times suggest that this shift comes as a result of weak demand for its foundry services. There is growing speculation that Samsung might even dedicate the P4 fab entirely to memory chip production, driven by the steady demand for HBM and other advanced memory types used in AI servers.

These developments also cast uncertainty on Samsung’s investment in its Taylor, Texas plant. The company had originally planned to begin mass production of 4-nanometer chips there next year, but this has now been pushed back to 2026. Although the yield for the 4nm process is reportedly stable, Samsung continues to face challenges in securing orders from fabless companies.

This situation has led to speculation that Samsung may pivot to focusing on more advanced 2-nanometer chips instead of 4-nanometer ones to attract orders for next-generation products. However, reports indicate that the company is also struggling to achieve high yields for both its 2nm and 3nm processes.

Low yields have been a key factor behind Samsung’s ongoing struggles in its foundry business, according to industry insiders cited by The Korea Times. While the company has managed to stabilize yields for its 4nm process, more advanced nodes like the second-generation 3nm and 2nm processes remain problematic.

Adding to the challenges, a report from Business Korea on September 11th highlighted that continued yield issues with the 2nm process have prompted Samsung to withdraw personnel from its Taylor, Texas plant, marking another setback for its advanced wafer foundry ambitions.

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• [News] Samsung’s 2nm Yield Rate at Most 20%, Withdraws Personnel from Texas Taylor Plant

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