Wednesday, October 2nd 2024
Samsung Considers Foundry Division Spin-Off as Poor 3 nm Yields Deter Customers
The grass isn't always greener on the other side, especially as we're running out of sides in the advanced semiconductor manufacturing sector. A recent report by Business Korea highlights Samsung Securities' July publication titled "Geopolitical Paradigm Shift and Industry," which paints a less-than-optimistic picture of Samsung's current state of affairs. The report even evaluates a possible spinoff of Samsung Foundry. The Korean tech giant has faced various business setbacks related to its state-of-the-art 3 nm Gate-All-Around (GAA) FET node. Reports indicate that this node only manages to yield 10-20% of working silicon, making potential customers reluctant to secure partnerships with Samsung. Samsung Securities projects that Samsung Foundry, along with the LSI division, will suffer a 500 billion won (about $385 million) loss this year.
Poor yields and difficulty securing customers have left Samsung facing tough choices, including the possible sale of its massive Foundry unit, which manufactures logic for external customers. It's noteworthy that Samsung is one of only three companies left in the advanced semiconductor manufacturing field, alongside TSMC and Intel. Many companies struggled to deliver results when transitioning to sub-7 nm nodes. Global Foundries dropped out of the race to focus on mature nodes, while Intel faced delays. TSMC has been the only company so far to consistently set and execute its goals, positioning itself as the industry leader. With low yields on the 3 nm GAA FET node, Samsung currently holds 11.5% of the global foundry market share in Q2, while TSMC dominates with 62.3%.
Sources:
Business Korea, via Wccftech
Poor yields and difficulty securing customers have left Samsung facing tough choices, including the possible sale of its massive Foundry unit, which manufactures logic for external customers. It's noteworthy that Samsung is one of only three companies left in the advanced semiconductor manufacturing field, alongside TSMC and Intel. Many companies struggled to deliver results when transitioning to sub-7 nm nodes. Global Foundries dropped out of the race to focus on mature nodes, while Intel faced delays. TSMC has been the only company so far to consistently set and execute its goals, positioning itself as the industry leader. With low yields on the 3 nm GAA FET node, Samsung currently holds 11.5% of the global foundry market share in Q2, while TSMC dominates with 62.3%.
24 Comments on Samsung Considers Foundry Division Spin-Off as Poor 3 nm Yields Deter Customers
Memory/storage chips are okay. TVs and home appliances are also selling well. Samsung overall is okay :)
As for spinning things off, keep in mind that this is a Korean company we're talking about, so it will end up being a subsidiary owned by Samsung somehow anyhow, or a Samsung shell company, since Koreans do not want outside investment into their chaebols. Korean owned businesses tend to stay Korean owned.
On top of that, Samsung still need access to these fabs to produce all the chips they make, including DRAM and NAND, so Samsung is going to want to be in control.
www.semianalysis.com/p/samsung-electronics-cultural-issues
I still remember when N3 hadn't really gotten off the ground, but Samsung was loudly trumpeting its GAAFET "successes".
When was the last time Samsung foundries had a winner on their hands? 7 years ago?
the same type of """""analyst""""" that said Sony should sell their sensor division
No one sane and not evil wants samsung to quit semiconductors.
a world where the only options are TSMC and SMIC that do the latest nodes is not going to be a nice world for tech.
www.thehindu.com/sci-tech/technology/samsung-union-in-south-korea-says-will-strike-indefinitely/article68387715.ece
peoplesdispatch.org/2024/09/24/samsung-workers-in-india-continue-their-strike-and-demand-recognition-of-union/
www.reuters.com/technology/samsung-elec-plans-global-job-cuts-up-30-some-divisions-sources-say-2024-09-11/
Back to the news though, what about Micron? there still in the game for making their own ICs for RAM as an example of a product line from their portfolio.
In terms of not being the only one with new tech - yes. In terms of real business - not any time soon.
you are right about big clients like apple and nvidia those guys will take quite some convincing to dip their toes in a new fab.
출처 : Businesskorea (www.businesskorea.co.kr)
Let´s wait and see...
U.S. Govt pushes Nvidia and Apple to use Intel's foundries — Department of Commerce Secretary Raimondo makes appeal for US-based chip production | Tom's Hardware (tomshardware.com)
I think we are underestimating how difficult regulatory life will get for TSMC once the 18A fab is even an option.
nvidia just making the small die for gamers