TSMC wins Google and Qualcomm 3nm orders away from Samsung Foundry over yield, power issues

Samsung Foundry has issues with yields and power efficiency, leaving TSMC to win 3nm orders from Google and Qualcomm to join AMD, Intel, Apple, NVIDIA.

4 minutes & 3 seconds read time

TSMC has just secured orders from US tech giants Google and Qualcomm for next-gen 3nm, as Samsung Foundry is having issues with yields and power efficiency, reports South Korean media.

TSMC wins Google and Qualcomm 3nm orders away from Samsung Foundry over yield, power issues 402

In a new report from Business Korea, we learn that most companies will allocate their orders to TSMC for next-gen 3nm chip designs. As of June 17, there are 7 major companies using TSMC for 3nm designs. This includes NVIDIA, AMD, Intel, Apple, Qualcomm, MediaTek, and Google, which are prioritizing the use of TSMC's 3nm manufacturing process.

We heard rumors of Google moving to TSMC to make its next-gen Tensor G5 processor for its upcoming Pixel 10 smartphones in late-May, but it seems these deals are actually happening now as Samsung Foundry is floundering with trying to catch up (let alone match) the semiconductor dominance that TSMC holds.

Samsung kicked off 3nm process mass production three years ago now, but had issues securing customers. In June 2022, Samsung was the first in the industry to use 3nm Gate-All-Around (GAA) process to mass production, but the first-gen 3nm (SF3E) has been performing "below expectations" in yield and efficiency, reports Business Korea.

Not only that, but the next-gen Exynos 2500 processor that was developed by Samsung System LSI Division, and produced through its in-house Samsung Foundry 3nm process, is also reported to have "disappointing yields", reports Business Korea.

A representative also highlighted issues in heat management, saying: "Heat issues in semiconductors have been a longstanding challenge for leading chip manufacturers over the past 20 years, but it has become a crucial issue with the onset of the AI semiconductor era. In mobile chips, heat issues can compromise the entire structure of smartphones, and for server chips, the heat generated by one server rack can spread like wildfire, potentially causing overload across the entire server".

TSMC reportedly holds a foundry market share of around 61.7% as it stands, with Samsung Foundry dropping to just 11% in Q1 2024. It's not a good look or a good future for Samsung in the semiconductor space right now.

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NEWS SOURCE:businesskorea.co.kr

Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering and has recently taken a keen interest in artificial intelligence (AI) hardware.

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