Samsung faced high defects when mastering the 2nm process at a new factory in Texas

The South Korean company Samsung Electronics quickly built a new facility in Taylor, Texas, but was in no hurry to put it into operation, so the production launch date shifted from the end of 2024 to 2026. The production of chips using technologies thinner than 4 nm should be mastered here, but problems with mastering the 2 nm process technology have already appeared.

Image source: GlobalFoundries

At least this is reported by Business Korea, citing its own sources. The South Korean company was even forced to recall personnel from Texas who were preparing for the start of pilot production of 2nm products. According to available information, Samsung is having problems with the low yield of suitable products within its own 2nm process technology. This criterion shows what part of the crystals on the silicon wafer passes the final quality control. Korean sources report that now it does not exceed 10–20%, and this does not allow us to count on the economic feasibility of producing 2nm products in such conditions.

Attempts to correct the situation were made by Samsung management at the highest level, and consultations with equipment suppliers such as ASML and Zeiss were led by the chairman of the board of directors, Lee Jay-yong, whose grandfather was the founder of the company. These attempts were unsuccessful, so Samsung will be forced to recall specialists from the United States who were preparing to launch the 2nm process at a plant in Texas. Nothing has been reported about the fate of chip production using the less complex 4nm process technology at this site. This summer, a decision was made to abandon the development of 4nm technology in Texas this year with the goal of releasing 2nm chips at a later date.

Meanwhile, the allocation of subsidies by the US authorities, who initially promised Samsung up to $6.4 billion in financial support, will depend on intermediate successes along this path. If Samsung does not demonstrate its technological viability, the US authorities may not allocate the necessary amount to it. According to sources, the average yield for Samsung’s contract business does not exceed 50%, while for rival TSMC it ranges from 60 to 70% even in the most severe cases. This gap affects both production costs and customer confidence. In the second quarter, TSMC controlled 62.3% of the global contract chip manufacturing market, while Samsung was content with 11.5%.

Experts interviewed by Business Korea believe that Samsung’s competitiveness is undermined by a slow bureaucratic structure that does not allow it to quickly allocate the necessary amounts of funds for research and development. Lack of investment in promising technologies undermines the company’s financial position in the long term, as well as its market position.