Samsung Foundry, once an aggressive competitor in the chip manufacturing race, has now recalibrated its goals in the wake of growing financial pressures and challenges in process technology. The company, which had been fervently chasing TSMC’s tail in the relentless pursuit of cutting-edge node advancements, is now shifting its focus towards sustainability and profitability. 
This marks a significant deviation from their initial aggressive roadmap.
Historically, Samsung’s journey with new nodes has been marked by setbacks. Despite early promise, their 3nm Gate-All-Around (GAA) process was plagued by low yield rates, making it less viable for widespread adoption. This issue reflects a broader pattern of Samsung’s struggle to balance innovation with efficiency, which has affected its competitive position in the industry.
In a pivotal move, Samsung has officially announced that it will be pushing back the launch of its 1.4nm process to 2029, nearly two years later than originally planned. Instead, the company will be focusing its efforts on refining and optimizing existing processes like 4nm, 5nm, and 8nm, which continue to see significant demand in the market. The focus will also be on stabilizing the 2nm process, which Samsung sees as a more realistic and achievable target in the near term.
The shift in strategy comes as a response to the company’s mounting operating losses. While Samsung had initially aimed to push the boundaries of chip technology, it has now opted for a more measured approach to avoid further financial strain. This decision has led many to speculate that Samsung may never catch up to TSMC, especially as the Taiwanese giant prepares to roll out its 1.4nm process by 2028, a full year ahead of Samsung.
Ultimately, Samsung’s move might allow it to recover from its current struggles, provided the company can successfully execute its plan. While TSMC remains the undisputed leader in the race for cutting-edge semiconductor nodes, Samsung’s focus on optimizing existing technology could help it sustain its position in the foundry market for the foreseeable future.