The Taylor plant in Texas is a vital component of Samsung’s ambitious vision to mass produce wafers with next-generation technologies using the GAA, or ‘Gate All Around’ process. However, the tech giant has encountered another major hurdle with its 2nm GAA node, leading to a significant setback. According to a recent report, Samsung has been compelled to withdraw personnel from this key facility.
The original plan for the Taylor hub was to focus on mass-producing advanced wafers below the 4nm lithography, thereby allowing Samsung to attract high-profile clients in the U.S. Despite making progress with the plant, the company has struggled with ensuring robust yields, specifically for its cutting-edge 2nm GAA process. The situation for their 3nm GAA isn’t much better, with reports indicating that Samsung’s yields for this technology linger around 50%. In contrast, TSMC, a major competitor, boasts a more favorable range of 60-70%.
Samsung’s inability to boost its 3nm yields has already cost them orders from Qualcomm for the upcoming Snapdragon 8 Gen 4, with these orders going exclusively to TSMC. The 2nm GAA process doesn’t fare any better; industry insiders reveal that yields are disappointingly low, between 10-20%. This poor performance is insufficient to kickstart mass production or secure orders, prompting Samsung to reconsider its strategy for the Texas plant. Consequently, they have decided to withdraw most personnel, maintaining only a minimal workforce on-site.
Interestingly, Qualcomm reportedly has an interest in involving Samsung for its Snapdragon 8 Gen 5 orders for the coming year. Excluding Samsung entirely could drive up production costs, making the chipset even pricier compared to the Snapdragon 8 Gen 4. Should Samsung manage to improve its yield rates, it’s likely that Qualcomm will gain the confidence to place orders for the ‘SF2’ process, another term for 2nm GAA technology.
The recent developments highlight the competitive, high-stakes nature of semiconductor manufacturing, with significant implications for industry leaders and their future collaborations.
