Samsung Foundry hasn’t had the best year but now it seems that the company is finally prioritizing its actions. According to reports Samsung has disbanded the foundry technology development division and reassigned personnel to other teams.
Reassigned personnel have reportedly been relocated to divisions focusing on yield management, mass production and process design (via Jukanlosreve on X). This is apparently being interpreted as Samsung trying to improve its 3 nm fabrication yields before moving on to smaller chipsets. If this is true then Samsung’s plans for 1.4 nm chips by 2027 are well and truly dead for now.
So if Samsung is willing to put its lofty ambitions on hold for a moment to focus on improving current production then that’s a win in my book. The company needs to get better at manufacturing Exynos chips because the alternative just got a whole lot worse.
Qualcomm is allegedly planning to significantly hike the price of the upcoming Snapdragon 8 Elite Gen 2. This has sent Samsung into a panic because its flagships already cost more than its biggest rival’s: Apple.
There have been talks at the company about outsourcing chip production to TSMC. MediaTek has also been approaching Samsung with lucrative discounts. If Samsung doesn’t take MediaTek up on its offer then the next Galaxy phones may have to cheap out on displays and cameras. Samsung will also probably try to negotiate better terms with domestic component manufacturers.
Modern chip measurements are marketing and not based in fact. The jump from a “3 nm” chipset to a “2 nm” one will be a marginal improvement at best. Improving 3 nm yields, in my opinion, will serve Samsung far better financially than chasing after the next nanometer breakthrough.
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Abdullah is an ardent believer in the future of VR, and can't wait to see what more it brings to the table as technology improves. He enjoys covering new software releases in the XR industry, as well as major news about hardware and companies focused on VR.
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