Samsung Foundry has faced significant financial setbacks due to poor 3nm and 2nm yields, along with insufficient 4nm orders. These challenges led to the shutdown of some 4nm production lines. However, the company now seems to have secured a major 4nm order and is reportedly preparing to restart the previously closed lines.
Samsung to resume 4nm production at some closed lines later this year
According to the Korean media, Samsung recently secured major 4nm manufacturing contracts from Chinese cryptocurrency mining firms. The orders for 4nm Exynos chips have also reportedly increased recently. As such, the company is gearing up to resume production at some closed 4nm lines. It previously shut down around 50% of its 4nm, 5nm, and 7nm production facilities at its P2 and P3 plants in Pyeongtaek.
An industry official revealed that Samsung has already powered up all previously shut-down 4nm facilities. The company is preparing to run at full capacity by June. This signals a strong push to recover lost ground and maximize production output. Alongside Exynos and crypto chip orders, Samsung could utilize these lines for the production of Logic Dies for sixth-gen high bandwidth memory (HBM4) chips.
Unfortunately, despite a positive outlook, Samsung faces potential hurdles due to ongoing US restrictions on Chinese tech firms. The company currently depends on Chinese clients, such as Baidu, for a significant portion of its 4nm chip sales. Reports suggest that the Korean behemoth recently paused production of Baidu’s 4nm chips, likely in response to evolving US trade policies.
A semiconductor industry expert noted, “Although it [Samsung] has not officially stopped shipments to Chinese companies, it is presumed that it is assessing the impact after President Trump took office.” To make matters worse, the company hasn’t been able to improve its 2nm and 3nm yields. It has already lost many potential clients to arch-rival TSMC. It remains to be seen if Samsung can bounce back anytime soon.
