HardwareSamsung debated selling off its manufacturing arm as 3 nm yields remain low and the chip giant’s stock price dropsWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
HardwareSamsung debated selling off its manufacturing arm as 3 nm yields remain low and the chip giant’s stock price dropsWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
(Image credit: Samsung)
Moore’s Law observes that transistor counts tend to double every couple of years. However, if there’s massive yield wastage for each successful chip produced, transistor counts matter little. The money and capital required to keep up with these ever-denser transistor counts will be too much. It looks like Samsung is in this spot right now with its 3 nm process node.
Samsung’s response to this is to question different strategies moving forward, even perhaps spinning off its foundry division. According to Business Korea, the chip giant says that “since the foundry business requires closer contact with clients, active localization like establishing additional plants in the US is necessary” and asks, “How about spinning off the foundry business and listing it in the US?”
Yield refers to how many functional chips come out of each wafer produced—the lower the yield, the fewer fully functional chips can be produced from each batch. If yields are low, as they seem to be with Samsung’s 3 nm node, companies are less likely to want to produce their chips on it as they’re likely to get less return for their money.
We can’t be so reductionist as to blame talk of a foundry spin-off entirely on low 3 nm yields. But it will certainly be a factor. TSMC’s 3 nm nodes seem to be faring a little better. While Nvidia’s sticking to N4 forBlackwell, TSMC’s N3 nodes are reportedlyat full capacitythanks to featuring in IntelLunar Lakelaptops and Apple’siPhone 16.
In fact, when it comes to the most relevant mass-produced chips—namely, AI and data centres—TSMC still has the lion’s share of the ever-growing pie. Combine this with a disappointing Samsung 3 nm process and geopolitical woes, and it might make sense for Samsung to let its foundry go its own way.
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Regardless, news of any process node struggle isn’t good for us end-users. Yes, TSMC’s churning out chips just fine, but more healthy competition is almost always better for chip and component prices. So let’s hope Samsung gets things back on track.
Best AIO cooler for CPUs: Keep your chip chill.Best air cooler for CPUs: Classic, quiet cooling.Best PC fans: Quiet and efficient.
Best AIO cooler for CPUs: Keep your chip chill.Best air cooler for CPUs: Classic, quiet cooling.Best PC fans: Quiet and efficient.
Best AIO cooler for CPUs: Keep your chip chill.Best air cooler for CPUs: Classic, quiet cooling.Best PC fans: Quiet and efficient.
Best AIO cooler for CPUs: Keep your chip chill.Best air cooler for CPUs: Classic, quiet cooling.Best PC fans: Quiet and efficient.
Best AIO cooler for CPUs: Keep your chip chill.Best air cooler for CPUs: Classic, quiet cooling.Best PC fans: Quiet and efficient.
Best AIO cooler for CPUs: Keep your chip chill.Best air cooler for CPUs: Classic, quiet cooling.Best PC fans: Quiet and efficient.
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