1.4NM postponed: Samsung moves away from the TSMC fight for chip lithography leadership

A Samsung Foundry decidiu take a step back in your strategy of competing for chip lithography leadership. The South Korean giant postponed the construction of the test line of the process of 1.4nmwhich was scheduled for this year, and should postpone the investment to 2026 or beyond.

The movement signals an important turn: instead of disputing the limits of miniaturization with TSMC, the company now chooses to strengthen its position with processes already in maturation, especially the It de 2nmwhich should go into mass production at the end of 2025.

According to Samsung, the decision is linked to the need to focus efforts on more immediate and profitable technologies. This includes Improve yield (yield) of the 2nm process and increase productive capacity In response to the most concrete demand for intermediates, such as 4NM, 5NM and 8NM.

Pressure for results and unfavorable scenario

The current scenario of the Foundries sector has been challenging. We are ordered from customers e sales reduction affected the financial performance of the division, leading the company to rethink priorities.

The investment in the 1.4NM process, which would be partially done in the Pyeongtaek plant, was the only significant advance provided for advanced lithography for this year, which highlights the weight of the decision.

In a recent interview with the Korean press, A vice president of the Samsung Foundry Division acknowledged that Operational losses have been accumulating And that the focus is now on reduce losses and ensure economic viability.

The goal is to stabilize the 2NM process before you advance to us more complex. With 1.4NM technology postponed to 2028, we need to invest where there is the highest prospect of return

Bet on 2nm and internal review of the lines

Samsung intends to use the 2NM process already under development to manufacture the Exynos 2600programmed for the end of 2025. However, the current line of the line is still low, spinning between 20% e 30%which requires technological advances to achieve scale viability.

The company even studies convert part of the 3NM line to the Hwaseong campus to 2nmdepending on the volume of orders. The measure reinforces the focus change to intermediate processes with higher industrial absorption potential and better financial return.

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TSMC follows alone in the forefront

While Samsung reviews its trajectory, TSMC remains advanced in the race. The Taiwanese company maintains the Launch its 1.4nm process (A14) in 2028what should put it alone in the leadership of advanced lithography to less for the next three years.

In this context, Samsung’s retreat is not only a strategic reorganization, but also market repositioning. By giving up direct dispute with TSMC on the 1.4NM border, the company signals that its priority is operational sustainability and technological consistencyeven if this temporarily costs the protagonism in the short term.

Fonte: Etnews