Samsung Foundry Faces Setback as AMD Drops 4nm Process

Recent reports indicate that Samsung's semiconductor foundry is encountering challenges, particularly with its 3nm process technology, which has been widely recognized for its difficulties. As a result, the company may lose out on multi-billion-dollar orders from major clients like Qualcomm and NVIDIA.

Additionally, a slowdown in demand for traditional process technologies has led Samsung to shut down certain production lines in an effort to reduce costs. AMD, which had initially planned to adopt Samsung's fourth-generation 4nm process node (SF4X), has reportedly decided to cancel its plans, although the exact reasons remain unclear.

Samsung began mass production of chips using the SF4X process in March of this year. The company has been producing 4nm chips since 2021, continuously upgrading its process technology. The latest version of the 4nm process utilizes advanced backend routing techniques, which help lower manufacturing costs while enhancing chip performance.

AMD had originally planned to use Samsung's SF4X process for its server CPU I/O chips, as TSMC's 4nm capacity was insufficient to meet AMD's needs. Samsung was seen as a potentially more cost-effective option, especially given the intense pricing competition between Samsung and TSMC for securing high-profile customers.

Although the specific reasons behind AMD's decision to move away from Samsung's SF4X process remain unclear, some reports suggest that AMD may be pursuing TSMC's capacity instead or negotiating a more favorable deal with the foundry. Regardless of the outcome, this development highlights the increasing challenges faced by Samsung's semiconductor manufacturing division.