Samsung’s 4nm process yield rate increased to over 75%

Earlier reports indicated that Samsung appears to have surmounted a series of obstacles concerning the 4nm process, with the third-generation 4nm process enhancing performance, reducing power consumption, and increasing density. Moreover, the yield rate has been raised to 60%, sparking internal discussions at Apple. Word has it that AMD has inked a deal with Samsung, transitioning a portion of the 4nm chip orders away from TSMC.

According to Business Korea, Samsung has elevated the yield rate of its 4nm process to 75%, closely rivaling the 80% yield rate of TSMC’s 4nm process. Samsung’s series of advancements in the 4nm process has reignited interest among numerous chip design companies, including Qualcomm and Nvidia, thereby enhancing the likelihood of Samsung once again securing orders.

As Samsung’s semiconductor manufacturing process moved into the realm of 10nm and below, a series of issues arose. One of the primary ones was the continued failure to increase yield rates, which resulted in Samsung’s key customers gradually shifting their orders to TSMC. Over the past few years, TSMC has widened the gap with Samsung, with its capital expenditure (CAPEX) and capacity (CAPA) in 2022 being 3.4 and 3.3 times that of Samsung’s, respectively, and seizing 90% of the market share for the 7nm and below processes.

A slump in market demand, to a certain extent, is an opportunity for Samsung to boost its profits. A lower operational rate allows it to focus more resources on advanced processes. In addition to the 4nm process, Samsung’s 3nm process has also seen its yield rate increase to over 60%, fostering greater confidence in recapturing orders previously redirected to TSMC. Given TSMC’s continual escalation of wafer foundry prices, many chip design companies are reconsidering the issue of production outsourcing diversification, offering Samsung more opportunities.