Samsung Electronics' foundry business has achieved a critical breakthrough, significantly improving the production yield of its 4nm process to 60-70%. This major improvement has directly led to a significant new partnership, with U.S. AI company Tsavorite Scalable Intelligence placing an order valued at over $100 million for chips built on this process node.
For years, low yields plagued Samsung's 4nm technology, causing it to lose business to competitors like TSMC. The substantial yield recovery marks a pivotal step toward profitability for Samsung's contract chipmaking division. The order is for Tsavorite's Omni-Processing Unit (OPU), an innovative chip that integrates CPU, GPU, and memory to deliver flexible performance for next-generation AI workloads. For Tsavorite, choosing Samsung's now-mature 4nm node offers a cost-effective solution compared to leading-edge alternatives.
This deal is part of a broader resurgence for Samsung Foundry. Recent successes include securing orders from cryptocurrency mining hardware makers in China and, most notably, a massive $16.5 billion deal with Tesla to produce chips for the automaker. In October, Samsung also won the contract to manufacture Tesla's next-generation "AI5" autonomous driving chip, solidifying its position in the automotive semiconductor space.
While solidifying its mature 4nm process, Samsung continues to push advanced node development. Reports indicate its first 2nm GAA (Gate-All-Around) chip, the Exynos 2600, has entered production with yields around 50%. This multi-pronged technological advancement supports Samsung's ambitious goals to achieve positive cash flow in its foundry business by 2027.
ICgoodFind's Insight
Samsung's 4nm yield breakthrough and subsequent major deals signal a powerful comeback in the competitive foundry market. It demonstrates the company's regained capability to execute and attract high-profile clients, making it a stronger challenger to TSMC's dominance.
