Significant setback in 2nm yield, Samsung withdraws personnel from Taylor wafer fab
Due to ongoing issues with 2nm yield, Samsung Electronics has decided to withdraw personnel from its Taylor factory in Texas, marking a significant setback for its advanced foundry business. This decision was made after repeated delays in the production schedule, which has now been postponed from the end of 2024 to 2026.
The Taylor factory was initially envisioned as a production center for advanced processes below 4nm, with a superior geographical location close to major technology companies, ensuring supply to American customers. However, despite rapid process development, Samsung still faces challenges in achieving a 2nm yield compared to its main competitor TSMC, resulting in lower performance and insufficient mass production capacity.
Samsung's foundry yield is currently below 50%, especially for processes below 3nm, while TSMC's advanced process yield is about 60% to 70%. This yield gap has widened the market share gap between the two companies to 50.8 percentage points. TSMC accounted for 62.3% of the global OEM market in the second quarter, while Samsung only had 11.5%.
Industry insiders commented that Samsung's GAA (fully enclosed gate) yield is about 10% to 20%, which is neither sufficient for orders nor for mass production. Such a low yield has forced Samsung to reconsider its strategy and withdraw personnel from the Taylor factory, leaving only the minimum number of employees.
Samsung Electronics has signed a preliminary agreement to receive subsidies of up to 9 trillion Korean won under the US Chip Act. However, the prerequisite conditions for factory operation must be met in order to obtain these subsidies, and due to the current setback, the agreement is facing risks.
Samsung Chairman Lee Jae yong personally visited major equipment suppliers such as ASML and Zeiss, attempting to find breakthroughs in process and yield improvement. Despite these efforts, significant results have not been achieved, and the timing of reallocating personnel to the Taylor factory remains uncertain.
Experts suggest that Samsung needs to fundamentally strengthen its competitiveness. A semiconductor professor pointed out, "The prevalence of bureaucracy, slow decision-making, and low salaries within Samsung are the main reasons for the decline in wafer foundry competitiveness. Compared to 20-30 years ago, the delay in investment timing also indicates that the management has not fully recognized the current reality and needs fundamental reforms to the management system
The current situation of Samsung's advanced wafer foundry business highlights the challenges the company faces in narrowing the gap with TSMC. With the continuous development of the global semiconductor market, Samsung's ability to address these issues will be crucial to its future competitiveness and market position.
Samsung's foundry yield is currently below 50%, especially for processes below 3nm, while TSMC's advanced process yield is about 60% to 70%. This yield gap has widened the market share gap between the two companies to 50.8 percentage points. TSMC accounted for 62.3% of the global OEM market in the second quarter, while Samsung only had 11.5%.
Industry insiders commented that Samsung's GAA (fully enclosed gate) yield is about 10% to 20%, which is neither sufficient for orders nor for mass production. Such a low yield has forced Samsung to reconsider its strategy and withdraw personnel from the Taylor factory, leaving only the minimum number of employees.
Samsung Electronics has signed a preliminary agreement to receive subsidies of up to 9 trillion Korean won under the US Chip Act. However, the prerequisite conditions for factory operation must be met in order to obtain these subsidies, and due to the current setback, the agreement is facing risks.
Samsung Chairman Lee Jae yong personally visited major equipment suppliers such as ASML and Zeiss, attempting to find breakthroughs in process and yield improvement. Despite these efforts, significant results have not been achieved, and the timing of reallocating personnel to the Taylor factory remains uncertain.
Experts suggest that Samsung needs to fundamentally strengthen its competitiveness. A semiconductor professor pointed out, "The prevalence of bureaucracy, slow decision-making, and low salaries within Samsung are the main reasons for the decline in wafer foundry competitiveness. Compared to 20-30 years ago, the delay in investment timing also indicates that the management has not fully recognized the current reality and needs fundamental reforms to the management system
The current situation of Samsung's advanced wafer foundry business highlights the challenges the company faces in narrowing the gap with TSMC. With the continuous development of the global semiconductor market, Samsung's ability to address these issues will be crucial to its future competitiveness and market position.