Samsung wafer foundry is currently increasing efforts to improve the competitiveness of its 2-nanometer process in the industry, and the department is undergoing equipment improvements and production line upgrades. It's no secret that things are not going well for the South Korean giant in the semiconductor market, as the company's processes have fallen victim to defects, either from inconsistent yields or a lack of interest from the industry. It is said that Samsung's 3-nanometer products achieved a breakthrough due to the integration of GAA technology, but it did not arouse the interest of the industry at all and also caused huge economic losses.
It's a similar story with the next-generation 2nm process, where despite being ahead of TSMC in node size, the South Korean giant is still far behind when it comes to sustainable production capabilities.
Despite many obstacles, Samsung's foundry business is still confident about the future. According to the latest report from BusinessKorea, the Korean giant is embarking on mass production of 2nm products by establishing advanced production facilities at its Hwaseong factory in South Korea. It intends to reach a monthly output of 7,000 wafers in the first quarter of 2025. According to reports, Samsung is preparing to install a production line at its second factory in Pyeongtaek, with a production capacity of 3,000 wafers.
Samsung seems to have decided to compete with TSMC's process cycle, potentially overthrowing TSMC by expanding the scale of its "node shrink" process. Given that the Taiwanese giant plans to move to 1.4nm by 2027, Samsung has already started work on the 2nm process and plans to move to the 1.4nm process soon, so it is possible to be two years ahead of TSMC. During its recent earnings call, Samsung pledged to be confident in its foundry unit despite rumors of a possible spin-off, so it's safe to say that Samsung's foundry unit isn't giving up.
It is worth noting that Samsung’s focus on process reduction is not feasible given that existing technologies (especially 3nm and advanced technologies) have not yet achieved stable yields, which will only greatly reduce production efficiency. TSMC's 3nm and its derivatives are one of the most in-demand nodes in the market, and Samsung's focus on shrinking node sizes compared to TSMC won't work unless they can solve the yield issues.
Samsung still has a long way to go before it can challenge the likes of TSMC, and it's doubtful whether process advantages will make a difference, as stable yields are more important for widespread adoption of a technology. In any case, Samsung is still confident of attacking TSMC's throne, and only time will tell whether it can succeed.