Samsung's 1.4nm Chip Process May Be Canceled

Samsung Electronics' plan to mass-produce its 1.4nm SF1.4 process by 2027 is now in question. According to industry insider Jukanlosreve, the company may cancel the SF1.4 node altogether.

This potential setback is part of a broader set of challenges Samsung's foundry division is facing. The SF3 process has been struggling with low yields, delaying the launch of the Exynos 2500. Additionally, weak demand has forced the company to scale back production of older 5nm and 7nm nodes.

Despite these difficulties, Samsung continues to develop the Exynos 2600 based on its SF2 process and is reportedly working on AI chips for Japan-based AI company PFN. The company has also secured new orders from Chinese fabless firms for certain 4nm nodes.

However, major industry players still favor competitors such as TSMC and Intel. Reports indicate that Samsung Foundry holds only an 8.2% market share, significantly trailing TSMC's 67.1%. This disparity may lead to internal restructuring, including the possible transfer of the Exynos chip design division to Samsung's MX business unit to enhance control over future smartphone SoC designs.

Samsung's semiconductor struggles are further compounded by challenges across its business segments. In 2024, the company's mobile market share fell from 30.1% in 2023 to 28.3%, while its DRAM market share slipped from 42.2% to 41.5%.

Adding to the complexity, Samsung faces geopolitical risks and raw material price fluctuations, which further impact its operations. In response, the company is significantly reducing its foundry investment for 2025, cutting planned expenditures from KRW 10 trillion in 2024 to KRW 5 trillion (approximately $3.5 billion).