Samsung and TSMC are facing challenges with their respective 3nm technologies as they struggle to improve their yields. While TSMC has secured Apple as a long-term client for its updated N3E process, Samsung’s 3nm GAA node is experiencing slow progress. In fact, Qualcomm may refuse to place orders unless Samsung can achieve a yield of 70 percent, which currently stands at 50 percent.
According to reports, Samsung recently delivered the first 3nm GAA batch to Chinese customers, but the chips were incomplete as they lacked the necessary SRAM for the logic chip. Producing a complete 3nm GAA wafer is proving to be difficult, resulting in low yields for Samsung. This production problem is not unique to Samsung, as TSMC is also facing the same issue.
At a 50 percent yield, only half of the wafers produced are considered usable. As Qualcomm is required to pay for all the wafers, including the defective ones, this situation would lead to increased prices for its Snapdragon products. Consequently, this would have a financial impact on Qualcomm’s smartphone partners and consumers. If Samsung fails to improve its yields, Qualcomm may shift its mass production of Snapdragon 8 Gen 4 to TSMC’s N3E process, resulting in a setback for Samsung.
In conclusion, both Samsung and TSMC are struggling to see yield improvements in their 3nm technologies. This poses a challenge for Samsung, as Qualcomm is unlikely to place orders unless the yields reach 70 percent. Furthermore, Samsung’s own LSI division may refuse to accept orders if the yields remain low. The incomplete nature of the 3nm GAA chips and the difficulty in producing a complete wafer contribute to the low yields. If Qualcomm decides to shift production to TSMC, it would have consequences for Samsung and its smartphone partners, leading to increased prices for Snapdragon products.
