Samsung to Target 70% 2nm Yield by Year-End!

According to reports, Samsung is intensifying its focus on 2nm semiconductor manufacturing after facing challenges with its 3nm process, aiming to improve yield to 70% by the end of 2025 to attract major AI and server chip clients.

According to recent industry reports, Samsung's foundry business has been incurring quarterly losses in the trillions of Korean won. These challenges have been compounded by the delay of its new wafer fabrication plant in Taylor, Texas, now expected to begin operations in 2026. The company continues to struggle with low yields and underutilized production capacity, making it difficult to secure high-volume customers, potentially leading to further financial strain.

In response, Samsung has launched an internal review led by its Business Support Task Force and Global Research Center. The result: a strategic shift to concentrate resources on advancing its 2nm process while pausing investment in more experimental 1nm technologies. The pivot aligns with projected AI chip demand from the U.S. and other key markets, where Samsung believes 2nm will be more commercially viable over the next three years.

At the recent SAFE (Samsung Advanced Foundry Ecosystem) Forum 2025, the company revealed its updated roadmap, postponing the launch of its 1.4nm node and reaffirming its commitment to optimizing the 2nm platform. The decision reflects a broader effort to regain client confidence after previously falling short on performance and yield expectations for its 5nm and 3nm nodes.

Samsung's goal is to boost 2nm production yields ahead of the completion of its $44 billion investment in the Taylor facility. The success of this strategy is seen as critical in its competition against TSMC, whose 2nm yields have reportedly reached around 60%. In contrast, Samsung's 2nm yields are estimated to be under 30%, though internal assessments show progress.

The company is actively targeting U.S.-based tech giants. In March, Samsung appointed Margaret Han—former VP of Global Procurement at NXP and a 21-year veteran of TSMC—as VP of its U.S. foundry business, hoping her expertise and industry connections will help secure new contracts.

Performance benchmarks suggest Samsung's 2nm technology delivers a 12% increase in performance and a 25% improvement in power efficiency over its 3nm predecessor. In 2024, the company secured a 2nm order from Japanese AI chip designer PFN, marking a positive sign. Samsung is also in talks with several other potential clients.

However, recent reports indicate that Qualcomm has chosen TSMC's N3P process over Samsung's 2nm node for its upcoming Snapdragon 8 series flagship mobile processors—highlighting the continued challenge Samsung faces in reclaiming its position in the ultra-advanced semiconductor race.