Samsung Foundry has made some tough decisions recently, halting its long-term 1.4 nm chip production plans but securing a crucial contract with Tesla to manufacture its Dojo chips. Despite facing challenges, the foundry seems to be in a better position than it was in 2024, though compromises are necessary to maintain momentum in the competitive semiconductor market.
Last year, Samsung announced its ambitious plans to begin producing 1.4 nm chips by 2027.
Given the difficulty the company was experiencing with its 3 nm production, it was a bold target. However, Samsung successfully stabilized its 3 nm process and has launched the Exynos 2500, which will power the upcoming Galaxy Z Flip 7.
Now, it appears that the company has reassessed its timeline. The 1.4 nm chips, originally slated for 2027, are now not expected to enter production until at least 2028. For now, Samsung is focusing its energy on perfecting its 2 nm process, aiming to use it for the Exynos 2600 chipset, which could debut in the Galaxy S26 series.
The company has acknowledged that its 2 nm yields are currently sitting at 20-30%, which is far below the desired level. This could result in a delay for the Exynos 2600, but it’s important to note that Apple isn’t planning to introduce 2 nm chips in the iPhone lineup until the iPhone 18 in the following year. Samsung has time to resolve the issue and remain competitive.
Another promising development for Samsung is its potential partnership with Tesla. Allegedly, Tesla has placed orders for Samsung to manufacture its Dojo chips using the 2 nm process. This is a significant deal for Samsung, which has been struggling with client acquisition, as companies often turn to established foundries like TSMC. Samsung’s lower production costs make it an attractive option for companies like Tesla. Samsung is reportedly preparing its Texas plant to fulfill Tesla’s orders, but it’s vital that the company improves its 2 nm yields in time for production.
Despite the delay in the 1.4 nm plans, Samsung is still on solid ground. With Apple’s 2 nm chips still a year away, the company has time to perfect its technology. If Samsung can improve its 2 nm yields and produce competitive Exynos chips, it will remain a strong player in the semiconductor market. With its proven track record of stabilizing production processes, Samsung is likely to overcome these hurdles and continue innovating.