Samsung’s 3nm chip yields are stuck at 50%, while TSMC hits 90%. Why are clients switching? And can Samsung bounce back? Get the full story here.
In the fast-moving world of chip manufacturing, every percentage point matters. Leading companies are racing to shrink chip sizes, boost performance, and cut power usage — and the 3nm process is the latest milestone. While Samsung was among the first to announce mass production of 3nm chips, things haven’t gone according to plan. Yields have been low, competitors are pulling ahead, and major clients are walking away. Let’s break down what’s going on, how TSMC is dominating, and whether Samsung can turn things around.
Samsung’s 3nm Chip Woes Continue
Samsung Foundry is still having a hard time getting its 3nm chip production right. Even though they were one of the first to roll out 3nm mass production, their results haven’t lived up to expectations. Reports from Korea suggest Samsung’s yield rate is stuck at around 50%—that means only half of the chips made actually work as intended.
Meanwhile, TSMC is Crushing It
Across the sea, TSMC is having no such problems. Their 3nm yield rate is approaching an impressive 90%, and it shows. They’ve become the go-to choice for big tech names, and with yields that high, it’s no surprise. They’re able to produce chips faster, cheaper (per working unit), and with fewer issues.
Big Names Are Choosing the Safer Bet
With such a big difference in reliability, major chip clients like Apple, Qualcomm, AMD, and MediaTek are leaning toward TSMC. For them, it’s not worth the risk. TSMC’s consistency means fewer delays and better performance—which is everything in the competitive tech world. And because they face so little competition now, TSMC is charging premium prices and still winning contracts.
Samsung Finds Some Wins—But Mostly on Older Nodes
Samsung hasn’t been totally pushed out of the race. They’ve landed Google’s upcoming Tensor G5 processor for the Pixel line, and that partnership is expected to last at least four more years. They also snagged a deal with Nintendo to manufacture chips for the next Switch console. But those chips will be made using Samsung’s older 8nm process—not their new, troubled 3nm one.
Interestingly, in the 8nm space, Chinese chipmaker SMIC is starting to make some waves, attracting local companies with affordable, reliable options. While not a threat at the cutting edge yet, SMIC is becoming a serious player in mature tech nodes.
Trying to Win With Its Own Products
To stay competitive and prove their 3nm tech works, Samsung is planning to use its next-generation Exynos 2500 chip—built in-house on the same struggling 3nm process—in the upcoming Galaxy Z Fold 7. It’s a bold move that could help boost confidence in their own chips, or at least give them more real-world data to improve yields.
Why This Matters So Much
In chipmaking, “yield” isn’t just a number—it’s everything. A low yield means wasted materials, higher costs, and missed deadlines. When one company is pulling 90% working chips and another is stuck at 50%, that difference can decide who wins contracts and who loses them.
That’s why so many companies are playing it safe with TSMC—and why Samsung’s long-standing yield issues are raising eyebrows across the tech industry.
Looking Ahead: Can Samsung Catch Up?
Samsung still has the resources, talent, and partnerships to bounce back. But fixing yield problems at this level is no small task. The next year or two will be critical if they want to stay relevant in the high-performance chip space.
Conclusion
Samsung’s current struggles in the 3nm space are a sharp reminder of how tough and competitive chip manufacturing can be. While TSMC continues to shine with near-flawless performance, Samsung is fighting to find its footing. Still, with key partnerships in place and a chance to prove itself with its own products, Samsung’s foundry business isn’t done yet. The next chapter will depend on their ability to solve yield issues, innovate fast, and win back the trust of an industry that doesn’t wait around.
FAQs
1. What exactly is “yield” in chipmaking?
It’s the percentage of functional chips produced from a wafer. If you get 100 chips and only 50 work, that’s a 50% yield. Higher yields mean better efficiency and lower costs.
2. Why are Samsung’s 3nm yields such a big issue?
Because low yields mean higher costs, more delays, and riskier business for clients. Tech companies want consistency—something TSMC is offering right now.
3. Which companies have left Samsung for TSMC?
Big names like Apple, Qualcomm, AMD, and MediaTek have chosen TSMC for their next-gen chips because of better yields and proven performance.
4. Is Samsung still working with anyone?
Yes! They’re producing Google’s upcoming Tensor G5 chip and also handling chips for Nintendo’s Switch 2 (though on an older 8nm process).
5. What’s happening with the Exynos 2500?
Samsung plans to use this 3nm chip in its Galaxy Z Fold 7. It’s made in-house and could serve as a proof of concept for their 3nm tech.
6. Can Samsung turn things around?
They’ve got the resources and time, but the pressure is on. If they can improve yields, they have a chance to stay in the race. But TSMC is far ahead—for now.
