Samsung wants to make itself more competitive in the 4nm chip market through mass production.
Samsung is about to start thea mass production of 4nm third-generation chips. This will take place during this first half of 2023. These chips are very small and use very advanced technology. It should be noted that Samsung has finally succeeded in stabilizing production in large quantities. This was one of his major obstacles at the start of the production process. Thanks in particular to improvements in performance, power consumption and surface area.
Samsung catches up with its competitors
Improvements made by Samsung Foundry have enabled the company to continue production of these 4nm chips. What has been able to attract large corporate clients. These 4nm chips will be based on a second generation process. Additionally, this is the first time the division has specified when to mass-produce a next version of the 4nm chip.
Previous versions of 4nm chips had better performance. In addition, they had lower power consumption and occupied less space than the SF4E chip. However, Samsung had difficulty managing the mass production of these chips. Which led to the loss of its largest customer, Qualcomm, to TSMC. Recently, Samsung also lost Tesla’s large 4nm chip order to TSMC. That is why improving the production yield of the third generation chip is crucial for the company.
The company still needs to improve its chip production output to compete with TSMC. Indeed, according to internal sources, Samsung’s 4nm chip production yield is 60%. Which is even lower than that of TSMC, which is 70-80%. Additionally, TSMC plans to use its Arizona factory to manufacture 4nm chips. It should be noted that mass production will begin in 2024. To stay competitive, Samsung will build a chip production line at its factory in Taylor, Texas.