Miniaturization
Samsung Electronics will begin mass production of third-generation 4-nm chips, the main item in the foundry ultra-micro fabrication process sector, during the first half of this year. While stabilizing the yield, which was a problem in the early stages of the process, the Korean semiconductor giant succeeded in technological advancements in performance, power consumption, and area improvement compared to the initial process, which gave the Korean chipmaker the green light with regard to attracting large corporate customers.
According to a Samsung Electronics business report released on March 12, Samsung Electronics will begin mass production of chips through a 4-nm 2.3-generation process in the first half of this year. This was the first time that Samsung Electronics mentioned the specific mass production time of a 4-nm follow-up version. Second- and third-generation products show better performance, lower power consumption, and use smaller areas compared to SF4E, an early version of 4-nm chips. Even after the commercialization of the SF4E chip, Samsung Electronics went through great difficulties in the management of the chip’s yields, finally losing Qualcomm, the largest customer of Samsung Electronics, to TSMC.
However, Samsung Electronics stably raised its production capacity since the yields of its 4-nm process were put on the right track beginning in 2022. Industry insiders estimate Samsung Electronics’ 4-nm process yield at 60 percent. Although Samsung Electronics’ yield has not yet reached the yield of TSMC, which is known to be in the 70-80 percent range, experts say that its yield is improving rapidly and mass production of the follow-up version is also accelerating.
Since Samsung Electronics had a breakthrough in solving technical challenges such as improving performance and yields in advanced processes, its competition with TSMC is expected to heat up in the mass production of the ultra-micro fabrication processes for 5-nm or more advanced chips.
Currently, the most advanced semiconductor process technology stands at 3 nanometers, but the main products are still on 4- and 5-nm chips. According to Counterpoint Research, a market research firm, as of the third quarter of last year, 4- and 5-nm processes accounted for 22 percent, the highest, of sales, eclipsing 6- and 7-nm processes (16 percent) and 16-, 14- and 12-nm processes (11 percent). TSMC plans to mass-produce 4-nm chips at its Phoenix, Arizona plant scheduled to go into operation in 2024. Samsung Electronics is also building a 4-nm production line at its foundry plant in Taylor, Texas, with the goal of beginning its operations in the second half of 2024.