Samsung Reportedly Secures 4nm Orders From Major Data Center Customer

Samsung Foundry has reportedly secured orders for its cutting-edge 4nm process from a major customer within the data center industry. This came when the Korean behemoth demonstrated improvements within the process, especially in yield rates.

Samsung Bags Major Data Center Custom For 4nm Process Node After Improvements In Yields & Utilization Rate

ZDNet Korea reports that Samsung Foundry recently received orders for AI-based semiconductors in data center applications. With the recent AI boom, Samsung's name was to be found nowhere, and the company couldn't capitalize on the hype to its fullest. However, with this report, things could turn around wildly for the Foundry division since it has been a victim of an economic downturn for quite some time.

The driving force behind the order is the significantly improved yield rates of Samsung's 4nm process. Industry sources report that they have risen to a level similar to that of TSMC; the estimated figure is around 75%, which is a big jump. Samsung currently employs different variations of the 4nm process named the 4LPP and the 4LPP+, both used in mobile SoC production. However, Samsung Foundry could potentially transition into the AI semiconductor industry and harness the power of its 4nm process.

Samsung's chip engineers holding the company's first batch of 3nm GAA wafers

While the report doesn't specify where the order is from, the word on the block is that the customer might be AMD. Rumors have also pointed out both Google and AMD to sign deals with Samsung to secure 4nm orders. Now AMD may not be giving up on TSMC anytime soon as its major products are still scheduled to leverage from their processes but it can be said that TSMC is working on maximum capabilities to fulfill NVIDIA's extensive orders, which is why AMD is said to incline towards Samsung to meet its own demand.

AMD signed to use Samsung Foundry 4nm pic.twitter.com/FuWFJLpvjY

— Connor / 코너 / コナー (@OreXda) May 1, 2023

No one knows for sure though; maybe this is AMD's primary weapon to combat the immense demand for NVIDIA's AI GPUs since it could provide customers with a more streamlined supply chain.

In past years, Samsung has made several efforts to bridge the gap between its foundry division and TSMC; by the looks of it, they are getting closer. Samsung's next-gen 3nm GAA yield rates have reached an astonishing 70% mark, and the company is the first to employ the fabrication technique, which makes it ahead of TSMC. However, in terms of onboard partners and orders, Samsung still has a long way to go.

Written by Muhammad Zuhair