Samsung and TSMC are reportedly set to launch mass production of their 2nm technology in 2025. Samsung is considering offering discounts to potential customers in order to gain market share from TSMC. However, Samsung is facing challenges with low yields, particularly with the 3nm GAA process, which may have contributed to losing orders from Qualcomm. While Samsung is ahead of TSMC in adopting the gate-all-around architecture (GAA) for its 3nm process, it needs to improve its yields.
For example, Qualcomm has reportedly given 3nm chip orders exclusively to TSMC for its Snapdragon 8 Gen 4, due to Samsung's yield issues. To attract customers like Qualcomm, Samsung needs to raise its yields to around 70 percent. Additionally, Qualcomm is rumored to be delaying its dual-sourcing strategy to 2025, where it plans to place orders with both Samsung and TSMC to gain a pricing advantage.
It is vital for Samsung to address the yield issues with its 3nm GAA process before focusing heavily on the 2nm process. Improving yields will be essential irrespective of any potential discounts offered. If Samsung can enhance its yield rates, it may be able to match TSMC's pricing and attract customers looking to save on manufacturing costs.
While Samsung has not finalized its 2nm wafer strategy, improvements in yield for the 3nm GAA process and its next-generation node could position Samsung to compete with TSMC's pricing. Although it's uncertain if Apple will switch to Samsung, other companies may consider alternatives to save on manufacturing costs, which Samsung may need to consider in the future.
