Because the Crimson Queen instructed Alice:
My expensive, right here we should run as quick as we are able to, simply to remain in place. And in the event you want to go wherever you should run twice as quick as that.
Samsung, most likely the best-known model on this planet on the subject of smartphones, could also be in that very place. Android Headlines reviews that Samsung is going through challenges that threaten its management throughout a number of key areas. Regardless of being a significant participant globally, the corporate is now grappling with pressures that might impression its place. In response, Samsung’s CEO has urged staff to work arduous to enhance the standard of its merchandise.
The difficulties are largely as a result of points in Samsung’s semiconductor (SoC) and reminiscence chip manufacturing. Samsung Foundry, answerable for making SoCs, has been battling low effectivity in producing high-performance chips.
Experiences point out that Samsung’s 3nm chip manufacturing has a yield charge of lower than 30%, and typically as little as 10%, making it expensive to provide these chips.
Because of this, Samsung determined to not embrace the brand new Exynos 2500 chip in its upcoming Galaxy S25 collection. Regardless of efforts to resolve these points, the launch of the Galaxy S25 is just too quickly for vital adjustments. Samsung stays hopeful, nonetheless, that this chip can be prepared for future Galaxy fashions from the folding collection (Galaxy Z Fold and Z Flip).
One other problem is the lowered demand from key purchasers, with firms like Qualcomm and Nvidia turning to TSMC, considered one of Samsung’s primary rivals, as a result of ongoing manufacturing points.
Within the space of reminiscence chips, Samsung’s HBM (high-bandwidth reminiscence) chips are additionally lagging behind rivals, impacting Samsung’s capability to satisfy the wants of firms producing AI-driven know-how. Huge business gamers equivalent to AMD, AWS, Intel, and Nvidia are selecting different suppliers for his or her AI chips.
Throughout Samsung’s fifty fifth anniversary occasion, CEO Han Jong-hee emphasised the significance of know-how and high quality to the corporate’s success.
He referred to as for renewed efforts to take care of Samsung’s management, saying that attaining unmatched high quality and innovation is vital to staying aggressive. Han additionally inspired the corporate to discover new areas past its present merchandise.
Nothing new below the solar
Qualcomm turned to TSMC and waved goodbye to Samsung. | Picture credit score – Qualcomm
Samsung Foundry confronted challenges with its smartphone SoC manufacturing in early 2022 when it reported a low yield of 35% for the 4nm Snapdragon 8 Gen 1 processor.Which means that out of each 100 chips produced, solely 35 handed high quality management, and Qualcomm, which relied on Samsung to fabricate the chipset, needed to pay for these faulty chips.
On account of these poor yields, Qualcomm shortly switched to TSMC, a competitor with a a lot greater yield of 70%, to provide the Snapdragon 8+ Gen 1, and it has remained with TSMC for subsequent chips.
As each TSMC and Samsung put together to start out mass manufacturing of 2nm chips subsequent yr, TSMC plans to implement superior know-how for his or her transistors, which Samsung already makes use of in its 3nm manufacturing.
Nevertheless, Samsung’s yield points persist, with reviews indicating a low yield of simply 10-20% for its 3nm chips, which is insufficient for assembly demand.
TSMC holds a major benefit available in the market, controlling 62.3% in comparison with Samsung’s 11.5%. Though Samsung has determined to depend on TSMC for the upcoming Snapdragon 8 Elite chips for its Galaxy S25 collection, this alternative comes at a excessive price, with Qualcomm’s value hike for the chipset.
To keep away from paying these excessive costs for future chips, Samsung wants to reinforce its yield charges. In the meantime, MediaTek, the most important smartphone chipset provider, has hinted at providing Samsung aggressive pricing to make use of its Dimensity chips in flagship fashions if Samsung can’t enhance its manufacturing yields.
