Samsung’s foray into the world of 3nm GAA technology has encountered turbulence, leading to low and unstable yields. This setback has ensured that the Exynos 2500 chip will be notably absent from the Galaxy S25 lineup, paving the way for the exclusive debut of the Snapdragon 8 Elite in next year’s models. With improvement in the yield unlikely anytime soon, Samsung faces a potential pivot point: forming partnerships with other foundries might be crucial for sustaining its Exynos chip’s future.
The report stops short of naming potential partners, yet the semiconductor industry knows of one prevailing giant: TSMC. Samsung’s chip division, LSI, mentioned in a report by The Bell, indicates a strategic shift towards collaboration to invigorate its foundry business. While AMD’s name surfaced in discussions—bearing in mind their chip orders are routinely placed with TSMC—Samsung’s handover of all Exynos orders seems improbable.
Samsung is eyeing a ‘multi-faceted collaboration’ strategy to expand its prowess beyond mobile, automotive, and communication spheres, aiming to stabilize and enhance performance. Notwithstanding, when it comes to advanced manufacturing, TSMC remains Samsung’s primary focus. The catch? TSMC may not bite, given its current robust standing. In fact, TSMC appears to be strengthening its position further, as evidenced by its recent 60 percent yield in the trial production of its 2nm process—a milestone hinting at imminent mass production. Understandably, demand for 2nm wafers is anticipated to outstrip that of 3nm, diminishing any immediate incentive for TSMC to join forces with Samsung.
While the industry’s behind-the-scenes dynamics remain shrouded in mystery, and the intentions of industry heavyweights like TSMC are yet to be fully revealed, the situation is fluid. Samsung’s next steps in navigating these choppy waters could spell significant shifts in the semiconductor landscape. Stay tuned for updates as the narrative unfolds.
