Samsung Accelerates the Implementation of the 2nm Process Amid Production Difficulties

Samsung is actively implementing the 2nm process, striving to catch up with competitors. According to Business Korea, the installation of equipment for 2nm chip production has already begun at the S3 plant in Hwaseong. 

• In the first quarter of next year, the facility will be able to process up to 7,000 silicon wafers per month. 
• In the second phase, in the second quarter of 2025, Samsung plans to upgrade its S5 factory in Pyeongtaek to produce 1.4nm chips. It is expected that this line will produce up to 3,000 wafers per month.

To bridge the technological gap, the 3nm chip production line in Hwaseong is also being upgraded, and by the end of 2024, it will be capable of producing 2nm products. The company's strategic goals include the mass production of 2nm chips starting in 2024 and transitioning to 1.4nm technology by 2027.

Despite its leadership in memory chip and smartphone component manufacturing, Samsung faces challenges in the mobile processor segment. The company’s own Exynos chips lag behind competitors, forcing Samsung to use Snapdragon processors in global versions of its devices. This situation weakens the company’s position in the competitive market, and Samsung aims to close this gap through new technological processes.

In addition, Samsung’s production facilities suffer from underutilization. For example, the 4nm process has lost popularity, forcing the company to convert its Pyeongtaek plant to memory chip production. Despite these difficulties, Samsung is making efforts to modernize and is discussing the possibility of spinning off its contract manufacturing into a separate division to attract investments.