According to the Korean "Korean Daily" report, Samsung's crystalline OEM department is still in a difficult period, especially for advanced production block orders below 3 nanometers. Although the yield rate of 2/3 nanometers exceeds 40%, reaching the commercial standard, Samsung chip performance is not up to expectations compared with the power of the competitors.
Samsung has evaluated 2 nanometers with NVIDIA and Qualcomm. Market news Samsung and NVIDIA GPU performance tests found that they are lower than Telco products. Although Qualcomm has placed orders after evaluating, the order volume does not improve Samsung's revenue. Samsung's advanced process development is still as bottlenecks.
Samsung crystal round foundry center of gravity shifts to improve chip performance, accompanied by adjustment of the volume and production process of some processes. It was originally scheduled to be extended to 2029 for 1.4 nanometers in 2027. 1 The nanometer mass production time has also been postponed for about two years. The industry is concerned about Samsung's process competition, especially Telco's production capacity of 1.6 nanometers in the second half of 2026. Intel also reported that executive chief Chen Liwu took the lead in developing the Intel 14A (1.4 nanometers) to attract major customers such as Apple and NVIDIA.
In terms of competing with customers, NTU has customers of major technology companies such as NVIDIA, AMD, Apple and Qualcomm, but Samsung has no large customers except for its own System LSI department application processor (AP) orders and small orders from new domestic and foreign companies. Samsung plans to strengthen the 2-nanometer second-generation (SF2P) process, and the third-generation (SF2P+) will be mass-produced in 2026, improving overall performance by about 20%.
In addition to the challenge of advanced processing, Samsung's 4/5/7 nanometer performance is not as good as TECHNOLOGY. Samsung adopts a pricing strategy of 30% cheaper than Telco, but even if Samsung's 4 nanometer yield exceeds 70%, Telco still masters the advantages of less than 7 nanometers.
In addition to chasing Taiwan Power, Samsung also competes at a price lower than 30%, and Samsung needs to have a more differentiated strategy. Samsung hopes to ensure orders to maximize performance below 7 nanometers, as Chinese manufacturers have not yet developed it. Industry insiders pointed out that Samsung is improving 4/5 nanometers, and because it is not mastered by Chinese companies such as SMIC, Samsung also has some advantages, which will help reduce penetration in the short term.
Overall, Samsung's crystalline foundry department strives to improve performance, adjust pricing strategies and differentiate strategies to cope with multiple pressures from NTD and Chinese competitors. However, the delay in advanced processing and the lack of important customer orders are undoubtedly more challenging Samsung needs to overcome.