Samsung 4nm Yield Hits 70%, Lands $100M AI Deal

Reports indicate that Samsung Electronics has raised its semiconductor manufacturing yield to around 60%–70%, a meaningful improvement that has already led to a major design win. A U.S.-based AI company has reportedly placed orders worth over $100 million for Samsung-built processors known as OPUs (Omni Processing Units).

Samsung's 4nm process had struggled with low yield in the past, which limited its competitiveness. However, progress on older manufacturing nodes appears to be paying off. The latest customer, Tsavorite Scalable Intelligence, is developing an OPU that integrates CPU, GPU, and memory into a single chip, aimed at reducing system complexity and boosting AI performance.

Last November, Tsavorite announced it had secured more than $100 million in pre-orders for its AI chips, though the manufacturing partner was not disclosed at the time. New reports now claim Samsung is behind that production deal, with the contract valued at roughly KRW 150 billion.

By choosing a more mature process node, Tsavorite is expected to significantly lower manufacturing costs. With demand rising for Samsung's 3nm and upcoming 2nm technologies, pricing flexibility on 4nm wafers could become a competitive advantage.

Yield remains Samsung's biggest technical obstacle, particularly at advanced nodes. Issues with 3nm GAA previously caused delays, pushing some designs toward TSMC. Still, there are signs of steady recovery. Although reports vary on whether Samsung's first 2nm GAA chip, the Exynos 2600, has reached mass production, earlier information suggested the yield had already reached about 50%.

Additional momentum includes new orders from two Chinese cryptocurrency equipment makers and a $16.5 billion agreement with Tesla, further highlighting renewed confidence in Samsung's manufacturing road map.

While the $100 million AI order is small compared with Samsung's overall scale, it represents a critical step toward its target of $69 billion in estimated operating profit by 2026 and its goal of turning its foundry business cash-flow positive by 2027.