Samsung faces challenges in 3nm chip production: poor performance and declining customer confidence

Samsung, which has become a leader in the development of 3nm technology using the Gate-All-Around (GAA) process, is rumored to be having trouble meeting its finished product yield targets.

Samsung, which has become a leader in the development of 3nm technology using the Gate-All-Around (GAA) process, is rumored to be struggling to meet its finished product yield targets.

Ambitious goals and reality: manufacturing challenges

According to Korean sources, Samsung originally set a goal of achieving 70% yield of year-round chips on its first two generations of 3nm GAA technology. However, that figure now appears unlikely. The first version of the 3nm process, called SF3E-3GAE, is showing more consistent results with yields between 50-60%. However, even this performance does not make this technology commercially attractive for mass production.

Low demand and loss of large customers

The inability to achieve high performance 3nm chips directly affects the number of new customers for Samsung. For example, Qualcomm has decided to produce the new Snapdragon 8 Elite exclusively on TSMC’s 3nm architecture, N3E, which deprives Samsung of a substantial order.

Disappointing results of second-generation 3nm technology

For Samsung’s second-generation 3nm process, known as SF3-3GAP, the numbers are even lower, with performance barely reaching 20%, well behind the 70% target. This reinforces doubts about the future of 3nm GAA technology and could potentially force even Samsung’s South Korean customers to switch to TSMC’s more stable solutions.

Samsung’s second-generation 3nm process, known as the SF3-3GAP, has been performing even worse.

Moving to a 2nm process: Samsung’s new hope?

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The troubles with 3nm technology may explain why Samsung is shifting its focus to 2nm process development, devoting more resources to that area. The company is rumored to be working on a new Exynos chipset, codenamed “Ulysses,” that will be built on SF2P technology and possibly debut in the Galaxy S27 model in 2027.

The future is in question: will Samsung be able to get 3nm chips into production?”

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For now, the future of Samsung’s 3nm technology remains uncertain. If the company doesn’t overcome its current challenges, it could have a negative impact on the future of its flagship Exynos 2500 chipset, which is scheduled for release in the coming years.

Samsung’s 3nm chip technology is still in doubt.