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

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.

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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.

• Read more: TSMC to raise 3nm manufacturing costs by 5%, new CoWoS advanced packaging 10-20% in 2025
• Read more: TSMC 3nm supply is tight: NVIDIA, Qualcomm, AMD consider raising AI chip prices
• Read more: TSMC's 3nm process production lines booked through 2026: Apple, Qualcomm, NVIDIA, and AMD
• Read more: Synopsys, Samsung achieve production tapeout of next-gen Exynos SoC on 3nm node
• Read more: Samsung in the AI era: next-gen 2nm node with backside power delivery mass production in 2027

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.

• Read more: TSMC's next-gen 3nm wafer cost are high: new CPUs, GPUs more expensive
• Read more: NVIDIA CEO flies to Taiwan, secures TSMC 3nm wafers for next-gen GPUs in 2024
• Read more: TSMC on 3nm : 3x silicon density over 7nm, 51% less power, 32% faster

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".

• Read more: TSMC gets 3nm orders from Apple, Intel and AMD: for iPhone 16, Lunar Lake CPUs and Zen 5 CPUs
• Read more: TSMC pumping out Apple 3nm orders: AMD, Intel, NVIDIA, Qualcomm, all on TSMC's 3nm in 2024
• Read more: NVIDIA's next-gen R100 AI GPU: TSMC 3nm with CoWoS-L packaging, next-gen HBM4 in Q4 2025
• Read more: AMD's next-gen Zen 6 APU codenamed 'Sound Wave' teased, made on TSMC 3nm node

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.