Samsung starts trial production of second-generation 3nm processors
January 22, 2024

Samsung starts trial production of second-generation 3nm processors

Samsung Electronics has begun trial production of its second-generation processor technology with a 3nm chip in a strategic move to compete with Taiwan Semiconductor Manufacturing Company (TSMC) and regain market share. The success of Samsung’s initiative depends on achieving a return of over 60% in the next six months, a key indicator for the industry.

Sources within this company, as reported Digitimessuggest that Samsung aims to translate its second-generation 3nm gate-all-around (GAA) process into mass production by the end of the first half of 2024. The ongoing trial production is about evaluating the performance, stability and reliability of chips made with this cutting-edge technology.

Samsung’s 3nm Gen2 process debuts in the Galaxy Watch 7

Industry insiders speculate that the first application of Samsung’s second-generation 3nm process could be in the Galaxy Watch 7, whose release is planned for 2024. If the advanced processor node passes the test, the success of the Galaxy Watch 7 could open the door to the integration of this technology in Samsung’s future Exynos 2500 processor (AP).

Analysts in South Korea predict that the successful implementation of the second-generation 3nm process could attract customers who may have previously chosen TSMC’s services. Qualcomm, a major semiconductor player, may be one such beneficiary, considering rehiring Samsung to produce its Snapdragon 8 Gen 3 chips, even though it previously outsourced production to TSMC.

Despite Samsung’s advances, TSMC remains the leader in semiconductor manufacturing. TSMC not only handles orders for Intel’s Meteor Lake processors, but is also slated to produce Nvidia H200, B100 and AMD MI300X products in 2024 using its advanced 3nm process.

Competition between Samsung and TSMC continues to shape the semiconductor manufacturing segment, with both companies striving for technological dominance and market supremacy. The coming months will reveal the extent to which the South Korean company succeeded in achieving the target rates of return and what impact the second-generation 3nm process will have on the global semiconductor industry.