Samsung Electronics has reportedly secured orders for 2-nanometer chips from a domestic neural processing unit corporation, following its order of 2-nanometer-based AI accelerators from Japanese artificial intelligence (AI) semiconductor hopeful Preferred Networks (PFN). Samsung Foundry's 2-nanometer process is currently undergoing mass production testing, with initial yields projected to exceed expectations compared to the repeatedly failing 3-nanometer process.
According to the industry on the 31st, Samsung Electronics is engaging in external order activities to secure 2-nanometer clients and is undergoing testing with multiple companies. Recently, a domestic AI semiconductor corporation has confirmed collaboration to produce the next-generation neural processing unit using Samsung Electronics' 2-nanometer process. Han Jin-man, who took office as the head of the foundry division at the end of this year, noted that he aims to dramatically increase the manufacturing yield for the 2-nanometer process.
Samsung Electronics' foundry division has entered a comprehensive renewal process since Vice Chairman Jeon Young-hyun took office as the head of the semiconductor institutional sector this year. Internal indicators related to mass production yield are also undergoing verification by changing existing processes and by external testing corporations. The company is actively recruiting specialized personnel for process optimization as well.
A source familiar with Samsung Electronics explained, "The yield of advanced processes is not simply secured by manufacturing capabilities but requires compatibility between design and manufacturing abilities," adding that, "Samsung Electronics' foundry has faced excessive crossfire throughout this year compared to its technological capabilities, but it has recently been making significant progress in cutting-edge process areas, setting the stage for a rebound."
The 2-nanometer process, which Samsung Electronics and TSMC will begin mass production on in the second half of next year, differs significantly from the 3-nanometer process in many respects. The existing transistor structure is changing, raising development expenses and design complexity, as well as necessitating sophisticated bonding and high wafer flatness. It is reported that the atomic layer deposition (ALD) process will be advanced, requiring the replacement and setup of numerous core equipment previously used in the 3-nanometer process.
Of course, there are challenges as well. To attract large clients, securing the foundry ecosystem and intellectual property (design assets) built over a long time by TSMC is necessary. An industry source noted, "From the perspective of fabless semiconductor design companies, various variables need to be controlled by the foundry operator to produce chips more quickly and reliably," adding, "In the case of TSMC, it certainly has the advantage of working with numerous design house partners and collaborators."
Samsung Electronics' foundry division is aware of this and is actively working to secure its own ecosystem. The division is expanding partnerships with design houses and gathering allies in the fields of electronic design automation (EDA), testing, and intellectual property. This is also a strength of Han Jin-man, an overseas sales expert proficient in external partnerships.
Samsung Electronics is sequentially bringing in 2-nanometer production equipment to its Hwaseong facility foundry line 'S3' starting in the fourth quarter of this year for trial production of the 2-nanometer process in the first half of next year. Recently, Samsung Electronics announced a new plan to focus on the 2-nanometer process at its Taylor, Texas, facility in the United States. The performance of the foundry business in the next year and the year after will depend on the success of the 2-nanometer process.
Meanwhile, competitor TSMC is reportedly securing a 60% yield in its recent trial production of the 2-nanometer process and is set to enter full-scale mass production starting next year. TSMC plans to begin 2-nanometer production at its 20 fabs in the Baoshan area of the Hsinchu Science Park in Taiwan, and it is also planning to gradually start mass production at its new factory in Central Taiwan Science Park from 2026. The 2-nanometer process will also be implemented at the Arizona factory in the United States.