Rumor: Samsung will no longer produce 7nm chips for Chinese companies

We reported yesterday (11) that TSMCa leader in the semiconductor segment, gave in to pressure from the United States and announced that it will no longer supply 7nm chips to Chinese companies. Now, it seems that the Samsunganother chip manufacturing giant, will follow the same path. According to a report from the Economic Daily Newsthe US will also ban the South Korean company from supplying 7nm lithography chips to China.

Impact on Chinese companies

If the ban is confirmed, it will be a serious blow to the technological advancement of Chinese companies. Currently, only TSMC, Intel and Samsung can produce lithography chips at 7nm or below on a large scale. Although the Chinese company SMIC has the capacity to work with 7nm technology, its production does not reach the scale and quality expected by large customers.

Samsung notifies Chinese customers

Sources in South Korea report that Samsung has already started notifying its customers in China about the ban on the supply of 7nm chips and other more advanced processes. However, Samsung has not yet officially commented on the matter.

Internal difficulties for Samsung

The decision to follow the restrictions imposed by the American government could bring challenges for Samsung, which will have to give up some important customers. The company is facing a delicate moment in relation to its chip production processes, and some Korean companies have already migrated their manufacturing from Samsung to TSMC in search of higher quality in the final product.

Analysts estimate that Samsung’s foundry division recorded losses of around 1 trillion won in the third quarter of 2024, which led the company to deactivate some of its operations. More than 30% of the 4nm, 5nm and 7nm production lines at the Pyeongtaek Line 2 (P2) and Line 3 (P3) facilities have already been decommissioned, with the shutdown expected to reach approximately 50% by the end of the year.

Intel acquisition rumors

Recently, rumors emerged that Samsung would be interested in acquiring Intel. The agreement would aim to expand Samsung’s production capacity, improve its internal processes and refine its lithography technologies.