Korean media: Samsung Electronics' 4nm OEM yield exceeds 75%

According to BusinessKorea, Samsung Electronics has recently increased its 4nm process yield (yield) to over 75%, sparking speculation that Samsung Electronics may expand cooperation with its main customers in semiconductor manufacturing (contract manufacturing).

On July 11, Park Sang wook, a researcher at Hi Investment&Securities, said in a contract manufacturing report that "Samsung Electronics has recently successfully improved the yield process of 4nm", and that "Qualcomm and Nvidia are more likely to outsource production through Samsung Electronics' contract factories again."

Previously, Samsung Electronics' OEM factory experienced delays in product launch and slow improvement in process yield below 10nm, leading to the main customer turning to TSMC. In addition, it is more difficult to attract Qualcomm and Apple, which compete with Samsung's semiconductor and mobile business units in electronic systems.

Therefore, TSMC's capital expenditure and production capacity last year were 3.4 times and 3.3 times that of Samsung Electronics' OEM business, respectively. In terms of ultra fine processes below 7nm, TSMC's market share is 90%, further widening the gap between the two companies.

However, it is expected that the yield of Samsung Electronics' 4nm process and 3nm process will exceed 75% and 60% respectively this year. We are optimistic that they can regain the lost customers of TSMC.

The downturn in the business environment is seen as an opportunity for Samsung to increase production. The decrease in factory operating rate has led to an increase in testing wafer investment, which helps to improve the yield of ultra-fine processes below 7nm in OEM factories.

In addition, it is reported that with TSMC increasing its order price, major customers such as Qualcomm and Nvidia are considered necessary to diversify their production outsourcing.