Samsung to Launch 2nm Production Line by Q1 2025

Samsung is set to launch its 2nm production line by Q1 2025, aiming to produce 7,000 wafers monthly.

Introduction

Samsung Electronics is accelerating its push into advanced semiconductor manufacturing, with plans to launch its 2nm production line by the first quarter of 2025.

The move is seen as a critical step in Samsung’s bid to catch up with industry leader TSMC, which continues to dominate the global foundry market.

Samsung’s ambitions extend beyond 2nm, with a 1.4nm production line also in the works, slated to begin operations by Q2 2025.

This article explores Samsung’s upcoming production lines, its strategic shifts, and the competitive landscape of the semiconductor industry.

Key Overview

  • Launch of 2nm Production Line: Samsung plans to produce 7,000 wafers per month at its 2nm production line by Q1 2025.
  • 1.4nm Production Plans: A 1.4nm production line is set for Pyeongtaek Plant 2, with a monthly output of 2,000 to 3,000 wafers by Q2 2025.
  • Strategic Changes: Samsung will convert its remaining 3nm production lines at the S3 facility to 2nm by the end of 2025.
  • Foundry Market Position: Samsung holds an 11.5% share of the global foundry market, while TSMC leads with 62.3%.
  • Management Response: Samsung’s top leadership has acknowledged performance challenges, focusing on the need to succeed with its 2nm and 1.4nm processes.

Samsung’s 2nm Production Line: A Critical Milestone

Samsung is advancing its foundry capabilities by establishing a 2nm production line at its S3 foundry in Hwaseong, South Korea.

According to industry sources, the company has already begun installing state-of-the-art equipment in preparation for mass production, with a goal of rolling out 7,000 wafers per month by the first quarter of 2025.

The 2nm process represents a significant leap in semiconductor technology, offering greater energy efficiency and performance compared to older nodes. Samsung’s investment in this cutting-edge technology is part of its broader strategy to regain lost ground in the fiercely competitive global foundry market.

Samsung’s Ambitious 1.4nm Plans

In addition to the 2nm line, Samsung has announced plans to introduce a 1.4nm production line at its Pyeongtaek Plant 2 by Q2 2025.

This line will focus on producing between 2,000 and 3,000 wafers per month, marking another step forward in the company’s technological advancements.

The introduction of 1.4nm technology is expected to bring further improvements in power efficiency and performance, catering to high-performance computing (HPC), AI applications, and advanced mobile devices.

Moreover, Samsung’s focus on these advanced process nodes signals its determination to challenge TSMC’s dominance in the foundry space.

While Samsung has faced delays and setbacks, particularly in 3nm production, the 2nm and 1.4nm nodes are crucial for the company’s future.

Strategic Changes to Existing Production Lines

Converting 3nm Lines to 2nm

Samsung plans to phase out its 3nm production lines at the S3 foundry and transition them to 2nm by the end of 2025.

This shift comes as part of Samsung’s broader effort to optimize its production capabilities and align its resources with future demand for advanced nodes.

With 3nm technology not performing as expected the transition to 2nm is seen as a necessary move to maintain competitiveness.

Adjustments at Pyeongtaek Foundry

Samsung has also made significant changes to its foundry operations at the Pyeongtaek facility.

Originally intended for advanced semiconductor production, Pyeongtaek Fab 4 will now be repurposed for DRAM manufacturing due to declining demand in other segments.

Additionally, Samsung has scaled back production at its Pyeongtaek Fab 3, which currently operates a 4nm line.

These adjustments reflect the company’s flexibility in adapting to market conditions and its focus on shifting resources towards 2nm and 1.4nm production.

Samsung’s strategic decisions indicate its readiness to pivot based on the rapidly changing demands of the semiconductor industry.

The Competitive Landscape: TSMC vs. Samsung

Samsung’s Market Share Struggles

Despite its efforts, Samsung remains a distant second to TSMC in the global foundry market. As of Q2 2024, Samsung holds an 11.5% market share, while TSMC dominates with a commanding 62.3%.

The disparity in market share underscores the challenges Samsung faces in competing with TSMC, which has established itself as the go-to foundry for high-performance semiconductors.

TSMC has long held an advantage in process technology, with its 3nm and 5nm nodes widely adopted by leading tech companies like Apple and Qualcomm.

Samsung, on the other hand, has struggled with production issues and delays, most notably with its 3nm Exynos chips. The success of Samsung’s 2nm and 1.4nm processes will be critical to closing the gap with TSMC.

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Importance of 2nm Success

The pressure is on for Samsung to get its 2nm production line up and running smoothly. Industry analysts have stressed that this development could make or break Samsung’s position in the semiconductor industry. “With the delay in 3nm Exynos production and other issues, getting the 2nm process right could determine Samsung’s future in the foundry business,” said one industry expert.

For Samsung, success at the 2nm level is not just about increasing wafer output—it’s about proving that the company can compete on the same level as TSMC in terms of technology, reliability, and performance. The stakes are high, and Samsung’s leadership knows it.

Management’s Response and Strategic Focus

Samsung’s leadership has taken accountability for the company’s recent struggles in the semiconductor division.

DS Division Vice Chairman Jeon Young-hyun recently issued a public apology for the division’s underperformance, acknowledging the challenges Samsung faces in its efforts to catch up with TSMC.

In response, Samsung has doubled down on its commitment to delivering next-generation process technologies. The company is investing heavily in research and development, as well as in expanding its production facilities. The successful execution of its 2nm and 1.4nm plans is now the top priority for Samsung’s semiconductor business.

Samsung’s management also recognizes that its ability to execute on these projects will have long-term implications for the company’s standing in the global foundry market.

The company is focused on building a robust ecosystem of tools, IP, and services to support its advanced nodes, ensuring that it can meet the needs of its most demanding customers.

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Conclusion

Samsung Electronics is at a critical juncture in its semiconductor journey. The company’s plans to launch its 2nm production line by Q1 2025, followed by its 1.4nm line later in the year, represent a bold effort to regain lost ground and challenge TSMC’s dominance.

While Samsung faces significant challenges, including delays and underperformance in its 3nm nodes, the company’s focus on next-generation technology shows its determination to remain a major player in the foundry market.

The next two years will be crucial for Samsung’s semiconductor division. If the company can successfully execute its 2nm and 1.4nm production plans, it could reshape the competitive landscape and position itself as a true rival to TSMC.

However, failure to deliver on these promises could further widen the gap between the two companies. Only time will tell if Samsung can rise to the challenge and secure its place among the semiconductor giants.

Kumar Priyadarshi
Kumar Priyadarshi

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL).

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