Samsung Trials 2nd Gen 3nm Process, Targets 60%+ Yield

On January 22nd, as reported by South Korean media outlet "The Korea Daily," Samsung has initiated the production of prototypes for its second-generation 3nm process (SF3). These prototypes are currently undergoing comprehensive testing to evaluate chip performance and reliability, with an ambitious goal of achieving a yield rate exceeding 60% within the next six months.

Both Samsung and TSMC are actively vying for clients, gearing up for the mass production of the second generation 3nm GAA architecture in the first half of this year. The ability to meet the demands of major clients such as Nvidia, Qualcomm, and AMD, coupled with a rapid increase in production capacity, is considered paramount in this fiercely competitive landscape.

In November of the previous year, Samsung publicly disclosed its plan to commence mass production of the SF3 process in the latter half of 2024. Presently, Samsung is diligently testing the performance and reliability of SF3 prototype chips, with the initial product expected to be the application processor (AP) integrated into the upcoming Galaxy Watch 7. Moreover, the Exynos 2500 chip, anticipated to feature in the Galaxy S25 series next year, is also slated to adopt the SF3 process.

However, it's noteworthy that chip dimensions, performance metrics, and power consumption goals differ significantly for application processors in smartwatches, mobile phones, and data center processors. Achieving a yield rate of 60% for small chips may pose challenges for commercial viability. Conversely, a 60% yield rate for chips with a reticle size is considered reasonable.

Should the SF3 production volume and performance prove to be stable, there is an opportunity for clients who migrated to alternative providers to reconsider Samsung. Samsung is particularly focused on its collaboration with Qualcomm, given Qualcomm's previous reliance on Samsung for the production of flagship chips. Despite a shift to TSMC for the new generation Snapdragon 8 Gen 3 due to heating issues, ongoing collaborations with Nvidia and AMD continue to see TSMC manufacturing high-end chips. It is anticipated that TSMC's 3nm process will be utilized for Nvidia's upcoming H200 and B100, as well as AMD's next-generation CPU and AI chips.