Samsung's 2nm Yield Rate at Most 20%, Withdraws Personnel from Texas Taylor Plant

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While Samsung Electronics is said to be delivering an oversea workforce cut up to 30%, a report from Korean media outlet Business Korea on September 11th has added that persistent issues with its 2nm yield rate have led Samsung to decide to withdraw personnel from its Taylor, Texas plant, signaling another setback for its advanced wafer foundry business.

www.trendforce.com, Sept. 12, 2024 – 

Originally envisioned as a mass production hub for advanced processes below 4nm, the Taylor facility's strategic location near major tech companies was intended to attract U.S. clients. However, despite rapid development, Samsung continues to face 2nm yield issues, resulting in performance and production capacity falling short of its main competitor, TSMC.

Reportedly, Samsung's wafer foundry yield is below 50%, particularly in processes below 3nm, while TSMC's advanced process yield is around 60-70%. This gap has widened the market share difference between the two companies.

As per a report from TrendForce, TSMC held a 62.3% share of the global wafer foundry market in the second quarter, while Samsung's market share was only 11.5%.

Industry sources cited by Business Korea further added that Samsung's Gate-All-Around (GAA) yield is around 10-20%, which is insufficient for handling orders and mass production. Such yields have forced Samsung to reconsider its strategy and withdraw personnel from the Taylor plant, leaving only a minimal number of staff.

Samsung Electronics had signed a preliminary agreement to receive up to KRW 9 trillion in subsidies from the U.S. Chips Act. However, a key condition for receiving the funding is that the plant must operate smoothly, and Samsung's current difficulties put this agreement at risk.

Reportedly, Samsung Chairman Lee Jae-Yong personally visited major equipment suppliers like ASML and Zeiss, hoping to achieve breakthroughs in process and yield improvements. However, there have been no significant results so far, and it remains uncertain when personnel might be reassigned back to the Taylor plant.

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