Samsung appears to be making a significant comeback in the semiconductor industry after facing yield issues earlier in 2024. The South Korean tech giant is showing promising progress on its 2nm Exynos 2600 chip, which could power next year's Galaxy S26 series, while simultaneously implementing controversial workplace changes to accelerate development.
Impressive Yield Improvements
Samsung Foundry has reportedly achieved a 40 percent yield rate for its 2nm manufacturing process, a substantial improvement from previous figures. This puts the company on track to narrow the gap with industry leader TSMC, which currently maintains approximately 60 percent yield rates for comparable technology. The progress signals a potential turnaround after Samsung's 3nm yield issues forced the company to equip the Galaxy S25 series with Qualcomm's Snapdragon 8 Elite processors instead of in-house chips.
Samsung 2nm Chip Development Progress
- Current yield rate: 40%
- TSMC's comparable yield rate: 60%
- Planned mass production: November 2024
- Target device: Galaxy S26 series (2026)
Mass Production Timeline
According to reports, Samsung plans to begin mass production of the 2nm Exynos 2600 chipset by November 2024. If the company maintains its current development trajectory, this timeline would enable Samsung to incorporate the new Exynos chip into the Galaxy S26 lineup scheduled for release in 2026. This achievement would potentially give Samsung an edge over Apple, as reports suggest the iPhone 17 will continue using 3nm technology across its entire lineup.
Controversial Work Hour Extension
In a related development, Samsung has received approval from South Korea's Ministry of Employment and Labor to extend the work week for its semiconductor R&D staff from the statutory 52 hours to 64 hours. This unprecedented approval, granted on April 9, makes Samsung the first company in South Korea to receive such an exemption under recently revised labor laws. The extension applies for six months per application, with the possibility of renewal.
South Korean Work Hour Changes
- Standard statutory workweek: 52 hours
- Samsung's approved workweek: 64 hours
- Approval date: April 9, 2024
- Extension period: 6 months per application
Competitive Pressures
The extended work hours highlight the intense competition in the semiconductor industry and Samsung's determination to regain ground against rivals like TSMC. While the increased work schedule may accelerate development timelines, the report raises questions about employee well-being and compensation for the additional hours. Other semiconductor companies in South Korea are reportedly preparing similar applications to extend work hours, suggesting an industry-wide push to increase productivity.
Strategic Importance of In-House Chips
For Samsung, developing competitive Exynos processors represents more than just technical achievement—it's a strategic imperative. Historically, Exynos chips have faced criticism for being less powerful and less efficient than their Snapdragon counterparts, leading Samsung to use Qualcomm processors in devices sold in the U.S. while shipping Exynos variants to other global markets. By creating equally powerful in-house chips, Samsung could potentially follow Apple's silicon strategy, which revolutionized MacBook performance through vertical integration.
Looking Ahead
If Samsung successfully delivers the 2nm Exynos 2600 on schedule, it could mark a turning point for the company's semiconductor business. However, tech enthusiasts will be watching closely to see whether the Galaxy S26 series offers substantial improvements beyond just processor upgrades. As competition in the smartphone market intensifies, Samsung will need to deliver meaningful innovations rather than relying solely on AI features or incremental software enhancements to maintain its position as a leading smartphone manufacturer.