In a blow to Samsung's chip manufacturing ambitions, TSMC (Taiwan Semiconductor Manufacturing Company) has reportedly declined an offer to produce Samsung's Exynos chips. This decision could have significant implications for Samsung's foundry business and its future mobile processors.
Rumored Partnership Fails to Materialize
Speculation had arisen that Samsung was considering using TSMC to manufacture its Exynos chips, potentially as a stop-gap solution for its own struggling 3nm node production. This move would have mirrored Intel's strategy of outsourcing chip manufacturing. However, TSMC has apparently rejected the deal, leaving Samsung to face its production challenges alone.
TSMC's Reasons for Refusal
While the exact reasons behind TSMC's rejection remain unconfirmed, several factors could be at play:
- Protecting Trade Secrets: TSMC may have been unwilling to share its process design kits (PDKs) and manufacturing expertise with a direct competitor in the foundry market.
- Capacity Constraints: TSMC may lack the necessary capacity, particularly on its newer, cutting-edge nodes, as most of it is likely already booked by major clients like Apple and Intel.
Implications for Samsung
This rejection places greater pressure on Samsung to improve its foundry business and address the low yield issues in its 3nm GAA process. This setback may also hinder Samsung’s ability to compete effectively against Qualcomm’s Snapdragon chips, which are used by several major smartphone manufacturers.
Exynos Development Continues
Despite this setback, Samsung continues to develop its Exynos chips, including the Exynos 2500, slated to debut later this year, and the Exynos 2600 which is also in development. Samsung is also reportedly working on a 2nm process which may be used in future flagship devices. Samsung must leverage its own expertise in order to improve its yields.
Source: Jukanlosreve
