Samsung began 3nm production in June this year. The company is using a new transistor architecture for its most advanced semiconductors yet. Called Gate-All-Around, aka GAA, this tech allows for denser packaging of transistors for a smaller footprint. It also brings performance and power improvements over the FinFET (Fin field-effect transistor) architecture employed by Samsung’s 4nm or bigger solutions. However, several months into the production, Samsung is still not getting huge orders for 3nm chips. The initial production was supposed to go to a Chinese firm that makes processors for cryptocurrency mining. However, recent US sanctions blocked that. Google is now reportedly the only company interested in Samsung’s 3nm solutions. But that order may not be massive, as Pixel smartphones don’t sell in huge numbers globally. While companies are refraining from placing orders for 3nm chips because of the current market conditions (declining electronics sales), that likely isn’t the only reason for lower production. Samsung seems to be having technical difficulties as well. Perhaps it has been unsuccessful in improving its yield rates. The company originally planned to introduce its second-gen 3nm chips (3GAP) in early 2023 but has delayed the plan by a full year to 2024. Hopefully, a year would be enough to set things right.
TSMC is also struggling with 3nm chip production
TSMC, the world’s largest contract chip manufacturer, isn’t in any better situation than Samsung when it comes to 3nm solutions. Perhaps things are worse for the Taiwanese giant. It has already delayed 3nm production once, hinting at a technical problem. According to the new report, the company initially planned to supply 3nm chips to Apple and Intel in the second half of this year but that didn’t happen. In the meantime, Intel has pulled out, leaving Apple as the only client for TSMC’s advanced semiconductors. The situation is unlikely to change next year. Most companies are taking a slow approach as far as 3nm chips are concerned. The next-gen semiconductors may not see wide adoption before 2024. This also gives chipmakers more time to refine their solutions. Since TSMC is sticking with the FinFET architecture for its 3nm chips, it’d be interesting to see how its solution compares against Samsung’s. We will keep you posted.
