Samsung Foundry lost several chip clients to TSMC due to its lower chip manufacturing yields and thermal issues.

KMIB News, Hi Investment & Securities, an investment firm, has published a report stating that the yield of Samsung Foundry’s 4nm semiconductor fabrication process has crossed the 75 per cent yield mark. TSMC can manage 80 per cent. But while TSMC is still ahead of Samsung Foundry in the 4nm process, Samsung Foundry has reportedly surpassed TSMC in 3nm chip yields.

According to the report, Samsung Foundry’s yield for its 3nm chip manufacturing process is 60 per cent. TSMC’s 3nm chip yield is around 55 per cent. It means Samsung finally has the upper hand over TSMC in ultra-advanced chip manufacturing technology. Since TSMC is behind Samsung Foundry in the 3nm segment, it is possible that Samsung could win back the clients it lost to TSMC for 4nm and 5nm processes.

Nvidia and Qualcomm are said to be snuffling around Samsung Foundry’s second-generation 3nm (SF3) process, mainly because TSMC’s chip product capacity is booked by Apple. TSMC’s chips, which will be made in Japan and the US, are also expected to be 15-30 per cent costlier, than its chip plants in Taiwan.

Hence, combining higher costs and lower capacity could make Nvidia, Qualcomm, and others consider Samsung Foundry’s 3nm chip manufacturing process. AMD could contract Samsung Foundry to make its 3nm and 4nm chips.