Samsung Lands First Customer for its Game-Changing 2nm Chip Process

Samsung Electronics has secured a pivotal 2nm AI chip foundry and packaging order from Japan’s Preferred Networks Inc., marking a significant advancement in its semiconductor capabilities and reinforcing South Korea’s foundry ecosystem.


Samsung Electronics has achieved a significant milestone by securing a 2nm AI chip foundry and packaging order from Preferred Networks Inc., a prominent Japanese AI application developer.

This win validates Samsung’s 2nm GAA process and their total package solution, making them a serious contender in the advanced chip manufacturing market. Samsung aims to begin mass production of their 2nm process for mobile applications in 2025, with expansion to other sectors in following years.

Specifics of the Deal: While the exact size of the order wasn’t disclosed, it involves both the foundry and package for the AI chips. Samsung will use their 2nm GAA process for manufacturing and their advanced 2.5D packaging service.

Benefits for Preferred Networks (PFN):

  • PFN expects this collaboration to lead to highly energy-efficient and powerful AI accelerators.
  • This will be crucial for their work in generative AI, particularly large language models, which require significant computing power.

Competition with TSMC:

  • TSMC, the current leader in contract chipmaking, is also developing a 2nm process.
  • They have already shared test results with clients like Apple and Nvidia and aim for mass production in 2025.
  • This deal positions Samsung as a strong competitor to TSMC, especially for AI chip solutions.

Overall Significance:

  • This agreement signifies a crucial step for Samsung in establishing itself as a major player in the next generation of AI chip manufacturing.
  • The focus on power efficiency aligns with the growing demand for sustainable computing solutions.
  • This deal could have ripple effects, attracting more clients to Samsung’s foundry services and potentially influencing the future landscape of chip manufacturing.

This deal is a pivotal moment for Samsung, reinforcing its status as the world’s leading memory chipmaker and enhancing South Korea’s foundry ecosystem.

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Samsung’s Journey in the Foundry Industry

Pioneering Technological Advancements

Samsung has been a global leader in semiconductor technology, consistently pushing the boundaries of innovation.

The company’s journey in the foundry industry began with its commitment to developing advanced process technologies. Samsung was the first to introduce the Gate-All-Around (GAA) technology, a significant leap from the traditional FinFET technology.

GAA offers better performance and energy efficiency, essential for the high demands of AI and machine learning applications.

Strategic Investments and Partnerships

Over the years, Samsung has made strategic investments to enhance its foundry capabilities. The company has built state-of-the-art manufacturing facilities and formed alliances with leading technology firms worldwide.

These efforts have positioned Samsung as a formidable competitor in the global foundry market, capable of producing cutting-edge semiconductors for a wide range of applications.

Samsung’s Strategic Acquisition

A Leap in Foundry Technology

Under the new contract, Samsung will manufacture AI accelerators using its advanced 2nm foundry process.

This process is based on the proprietary Gate-All-Around (GAA) technology, which significantly improves performance and energy efficiency. Additionally, Samsung will utilize its state-of-the-art 2.5-dimensional packaging service to enhance chip performance and integration.

Collaboration with Domestic Designers

The design of these AI accelerators will be managed by Gaonchips Co., a domestic fabless company.

This collaboration is a part of Samsung’s broader strategy to strengthen the foundry market by working closely with local chip designers.

Other domestic fabless startups like Telechips, ABOV Semiconductor, and Rebellions Inc. are also partnering with Samsung to develop next-generation AI chips.

Validation of Cutting-Edge Technology

Industry Recognition

This order is pivotal as it validates Samsung’s 2nm GAA process technology and advanced package technology as an ideal solution for next-generation AI accelerators,”

Song Taejoong, corporate vice president and head of Samsung’s foundry business development team.

This endorsement showcases Samsung’s capability to deliver high-performance solutions that meet the stringent requirements of AI applications.

Turnkey Services for Fabless Companies

Last year, Samsung introduced a package turnkey service, which manages the entire chip packaging process from production to testing.

This service is particularly beneficial for fabless companies, offering them a seamless and integrated solution for their semiconductor needs.

In 2022, Samsung achieved a significant milestone by starting mass production of chips using the GAA foundry technology, further cementing its leadership in the semiconductor industry.

Importance of the Acquisition

Strengthening South Korea’s Foundry Ecosystem

The acquisition of the 2nm AI chip foundry order is a significant boost to South Korea’s foundry ecosystem.

By collaborating with domestic fabless companies and leveraging its advanced technologies, Samsung is helping to create a robust and competitive semiconductor industry in the region.

This ecosystem is crucial for maintaining technological sovereignty and reducing dependency on foreign semiconductor manufacturers.

Read More:Microsoft China Bans Android: Employees to Shift to iPhones by September 2024 – techovedas

Driving Innovation in AI and High-Performance Computing

AI and high-performance computing are at the forefront of technological advancements, driving innovations across various industries.

The development of 2nm AI accelerators will enable faster processing of complex algorithms, leading to breakthroughs in fields such as healthcare, autonomous driving, and financial technology.

Samsung’s role in this development positions it as a key player in shaping the future of AI.

Future Developments

One-Stop AI Solutions by 2027

Samsung has ambitious plans to introduce an all-in-one integrated turnkey AI platform by 2027. This platform aims to provide customers with comprehensive AI solutions, enhancing their ability to develop advanced AI applications efficiently.

During the Samsung Foundry Forum 2024 in San Jose, California, the company emphasized its commitment to deepening collaboration with Preferred Networks to develop groundbreaking AI chiplets for next-generation data centers and generative AI computing systems.

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Advancements in Packaging Technology

The 2.5D advanced packaging technology is a heterogeneous integration package that combines different types of chips, such as memory, logic, and sensors, into a single package.

This technology enhances interconnection speed and reduces packaging size, making it an ideal solution for high-performance AI applications.

Samsung revealed the order from Preferred Networks at the Samsung Foundry Forum 2024 and Samsung Advanced Foundry Ecosystem (SAFE) Forum 2024 held in Seoul.

Read More:Microsoft China Bans Android: Employees to Shift to iPhones by September 2024 – techovedas

Roadmap to Advanced Process Nodes

SF2Z and 1.4nm Process

Last month, Samsung reaffirmed its commitment to mass-produce the 2nm process for mobile applications by 2025.

The company also introduced two upgraded process nodes, SF2Z and SF4U. Mass production using the new SF2Z technology is scheduled for 2027.

SF2Z incorporates an optimized backside power delivery network (BSPDN) technology, which places power rails on the backside of the wafer, eliminating bottlenecks between power and signal lines.

Pioneering 1.4nm Technology

Samsung is also preparing to advance its foundry process to the cutting-edge 1.4nm node by 2027.

We are breaking through the limits of miniaturization and preparing for new technological innovations through cooperation with various companies.”

Choi Siyoung, Samsung’s foundry chief, stated,

This next-generation technology will further enhance Samsung’s ability to deliver high-performance, energy-efficient chips.

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High-Bandwidth Memory (HBM) Developments

16-Layer HBM4 Chips

Samsung’s memory division is on track to develop 16-layer HBM4 chips, essential for generative AI due to their ability to process vast amounts of data rapidly.

The company plans to launch 3D packaging services for HBM this year, with the HBM4 model expected to be released in 2025.

This development will significantly boost the performance of AI accelerators and other high-performance computing applications.

Collaboration with Fabless Companies

Rebellions Inc. is developing next-generation AI accelerators based on Samsung’s 4nm process, shifting from the 5nm node.

ABOV Semiconductor is producing non-volatile memory, a core component of microcontroller units, using Samsung’s 65nm process.

This year, ABOV will produce advanced chips based on Samsung’s 28nm process, further strengthening the domestic semiconductor ecosystem.

Read More:iVP Semiconductor: India’s First Fabless Chip Company Eyes $70 Million Revenue – techovedas


Samsung will continue to host Samsung Foundry Forum 2024 in Japan and Europe in the second half of this year, reinforcing its commitment to expanding its global presence and fostering innovation in the semiconductor industry.

The company’s strategic initiatives, advanced technologies, and strong partnerships position it as a leader in the next-generation AI and semiconductor markets.

In summary, Samsung’s acquisition of the 2nm AI chip foundry order from Preferred Networks is a significant step forward in its quest to dominate the semiconductor industry.

The company’s innovative technologies and strategic collaborations are set to drive the future of AI and high-performance computing.

Editorial Team
Editorial Team
Articles: 1925