The semiconductor manufacturing landscape continues to evolve rapidly as companies race to develop increasingly advanced fabrication processes. Recent rumors suggest Samsung may be taking a step back from its ambitious roadmap to address more immediate challenges in its foundry business.
Samsung's Strategic Pivot
According to recent reports, Samsung may have canceled development of its next-generation 1.4nm manufacturing process. This surprising move comes as the company appears to be redirecting resources to improve yields on its 2nm Gate-All-Around (GAA) technology. The information comes from tipster @Jukanlosreve on X (formerly Twitter), who shared the rumor without providing specific reasons for the alleged cancellation. This potential shift in strategy highlights the significant challenges Samsung faces in its semiconductor foundry business.
Focus on the Exynos 2600
The reported cancellation may be directly tied to Samsung's efforts to ensure the successful development of its upcoming Exynos 2600 chipset. Production of this flagship system-on-chip is expected to begin in May, with Samsung reportedly establishing a dedicated team within its foundry division specifically for this project. The Exynos 2600 will be Samsung's first commercial 2nm chip and is slated to power the company's future Galaxy S26 series. Success with this processor could be critical for Samsung's semiconductor division, which has struggled to maintain market share against competitors.
Samsung Semiconductor Timeline
- Exynos 2600 production expected to start: May 2025
- Target implementation: Galaxy S26 series
- Current focus: Improving 2nm GAA yields
- Reportedly canceled: 1.4nm manufacturing process
Current State of Samsung's Foundry Business
Samsung's foundry division has been facing significant challenges in recent years. TSMC, its primary competitor, recently extended its global market dominance, capturing a reported 67.1 percent share of the semiconductor production market in Q4 2024. While Samsung has shown some progress with its 2nm GAA node, achieving approximately 30 percent yield in trial production, this still lags behind TSMC's reported 60 percent yield for its own 2nm process. This substantial gap illustrates why Samsung might be prioritizing improvements to its current technology rather than pursuing even more advanced nodes.
Samsung Foundry Market Position
- TSMC market share: 67.1% (Q4 2024)
- Samsung 2nm GAA yield rate: ~30% (trial production)
- TSMC 2nm yield rate: ~60% (reported)
Industry Perspective
The potential cancellation of Samsung's 1.4nm process aligns with broader industry trends. Even TSMC appears to be focusing primarily on perfecting its 2nm technology before aggressively pursuing sub-2nm processes. For Samsung, this recalibration could represent a more pragmatic approach to semiconductor development – focusing on making existing technologies commercially viable before pursuing the next frontier. The company's 3nm GAA process has reportedly faced yield challenges as well, further supporting the case for consolidating efforts on improving current technologies.
Future Implications
Despite these challenges, Samsung has previously stated it has no intentions of spinning off its foundry business. The company remains committed to competing in the semiconductor manufacturing space, but may be adopting a more measured approach to technology development. If Samsung can successfully improve yields on its 2nm process and deliver a competitive Exynos 2600 chipset, it could regain some confidence from potential customers who have moved to other foundries in recent years.
Industry Competition
The semiconductor manufacturing landscape continues to be fiercely competitive, with billions of dollars invested in research and development. While Samsung appears to be taking a step back with the reported cancellation of its 1.4nm process, this may ultimately prove to be a strategic decision that allows the company to strengthen its foundation before pursuing more advanced nodes. The success or failure of the Exynos 2600 could serve as a critical indicator of Samsung's ability to remain competitive in the high-end semiconductor manufacturing space.