TSMC to Reject Samsung Exynos Chip Outsourcing Request

Samsung Electronics is currently grappling with challenges in its semiconductor business, particularly in the production of its Exynos flagship processors. The company's System LSI division has encountered significant production issues, hindering the timely mass production and commercial launch of the Exynos chips. Reports indicate that the current yield rate for these chips is just 20%, far below the targeted 70%, causing delays in production.

In comparison, TSMC has reportedly achieved a 60% yield rate for its latest 2nm process technology. To address this critical situation, Samsung is reportedly considering outsourcing the production of its Exynos processors to external manufacturers.

However, the global landscape for high-end semiconductor fabrication is limited, with only TSMC, Samsung, and Intel possessing the capability to handle advanced process technologies. For Samsung's System LSI division, this means that its options are largely confined to TSMC.

Currently, TSMC leads in both advanced process technology and yield rates. According to TSMC's roadmap, large-scale production of its 2nm process is expected to begin in the second half of this year, further strengthening its dominant position in the industry. While there have been rumors that Samsung considered outsourcing the production of its new Exynos flagship chips to TSMC, the company has reportedly rejected the proposal due to concerns over trade secrets. TSMC is worried that, by taking over the Exynos production, Samsung could gain access to its cutting-edge process technologies, particularly how TSMC achieves yield rates of 80% for its 3nm and 60% for its 2nm processes.