Samsung has reportedly surpassed arch-rival TSMC in 3nm semiconductor manufacturing yield. According to the Korean media, the company has recently reached a 3nm yield rate of 60 percent. Its Taiwanese rival has only achieved a 55 percent yield rate of its most advanced semiconductors.
In the semiconductor industry, the yield rate is the percentage of usable chips. The higher this number, the more efficient the manufacturing process. It means the wafer loss is lower, thus reducing the production cost. A higher yield rate also means a larger production capacity and shorter wait times for customers.
Samsung Foundry has had yield issues for the past few years. The issues have been so big that many of its customers switched to TSMC for the production of their advanced chips. The list includes Qualcomm among others. However, the Korean firm has been determined to win back its customers’ confidence. It seems to be on the right track.
The latest information comes from the Korean capital market firm Hi Investment & Securities. According to KMIB News, which cites a recent report from the said firm, Samsung is also close to TSMC in 4nm yields. The former has a 4nm yield rate of over 75 percent. The Taiwanese giant sits atop with an 80 percent yield rate of 4nm chips.
Improved 3nm yield may help Samsung win back customers
It’s a rare feat for Samsung to do better than TSMC in the foundry market. The latter captures about 60 percent of the market, while the former follows distantly with a 15 percent share. But Samsung’s improved 3nm yields may make a few chip companies switch to it from TSMC for the production of their next-gen solutions. Qualcomm and Nvidia are among the names that are reportedly considering Samsung’s foundry.
The yield rates may not be the only factor driving these companies towards Samsung, though. Most of TSMC’s 3nm capacity is already reserved for Apple, so it may not take large-scale orders just yet. Moreover, the Taiwanese firm is charging up to 30 percent extra for chips manufactured in its US and Japan plants. Samsung’s technological expertise in AI (artificial intelligence) may also be playing a part.
Nonetheless, Samsung and TSMC going neck on neck in the foundry space should be beneficial for the semiconductor industry as a whole. Time will tell which firm goes on to lead the 3nm race. While the Taiwanese company is sticking to the FinFET transistor architecture, Samsung is moving to the GAA architecture. TSMC will adopt GAA architecture with its 2nm chips in 2025.
2023-07-18 15:08:39