Producing semiconductor chips is a complex endeavor, as manufacturers often face challenges in achieving optimal functionality across all cores in a chip wafer. This issue becomes even more pronounced with new lithographic nodes. Initially, performance per wafer can fluctuate significantly, and as engineers fine-tune their processes, performance typically improves. However, nascent technologies may start with yields around 50%, which is far from ideal.
A critical threshold for chipmakers is a yield of at least 60% per wafer, which is essential for ensuring node profitability and attracting customers. This figure, while being the minimum acceptable performance, should ideally be much higher to maximize competitiveness in the industry. At present, TSMC and Samsung are both engaged in the production of 2nm chips. However, recent leaks suggest that their yields per wafer present a striking disparity, with Samsung needing its 2nm node to become successful rapidly.
The Crucial Importance of the 1 and 2 nm Nodes for Samsung
The significance of these nodes was highlighted by Han Jong-hee, co-CEO of Samsung, in a 2025 address to investors. He expressed regret for the underperformance of the company’s stock, admitting, “Over the past year, our company has not responded appropriately to the rapidly evolving AI semiconductor market.” This candid acknowledgment underscored the stakes involved for Samsung as it navigates fierce competition in the semiconductor landscape.
Samsung must ensure the success of its cutting-edge chip manufacturing technology.
Jong-hee’s remarks point to the essential role of Samsung’s integrated circuit (IC) manufacturing subsidiary in the company’s broader strategy. However, the company is grappling with challenges across various sectors. Internally, Jay Y. Lee, the company’s president, lamented, “Our technological advantage has been compromised in all of our businesses,” emphasizing a lack of significant innovations or daring initiatives within the company.
In light of this backdrop, the performance of Samsung’s 2nm lithography is paramount. Unfortunately, reports indicate that the yields for its 2nm nodes hover around 55%, which is well below the critical 60% threshold. This deficiency means that the percentage of usable chips after advanced packaging could drop to approximately 40%.
In stark contrast, TSMC’s 2nm nodes are reported to achieve yields between 60% and 70%. This competitive edge places TSMC in a robust position to attract new clients, while Samsung risks falling behind if it fails to elevate its yield. For Samsung, crossing the 60% yield threshold in the coming months is essential not merely for competitiveness but for survival in an increasingly cutthroat marketplace.
As industry watchers look on, the coming months will be crucial for Samsung. The need for increased efficiency and innovation has never been more pressing. Without significant advancements in yield and performance, Samsung could find itself increasingly sidelined in the semiconductor race.
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For more insights: DigiTimes Asia
In Xataka | Future chip advancements and manufacturing capabilities are on the horizon.