Samsung Is Actively Moving Customers to 5-Nanometer Technology

Sharp competition continues in the global market for semiconductor production volumes and capacity. According to ZDNet Korea, Samsung Electronics is actively steering customers toward its 5-nanometer process technology because its 4-nanometer capacity is heavily oversubscribed. The decision is expected to significantly affect the existing balance and supply chains in the global semiconductor market. According to Ixbt.com, the report states.

Samsung Foundry’s 4-nanometer production lines are reportedly almost fully booked through next year. The main reason is said to be the company’s own internal requirements, including a sharp increase in orders to produce new types of HBM4 memory chips. Various AI accelerators are also being manufactured at these facilities.

5 Nanometers as a Compromise Solution

In the current situation, Samsung is offering its customers 5-nanometer technology as an alternative that is sufficiently mature and cost-efficient. This process is cheaper than the most advanced 2- and 3-nanometer technologies while still capable of fully meeting the requirements of many modern manufacturers. Originally intended for automotive electronics, the technology is now also gaining popularity among developers of AI solutions, neuroprocessors, and server chips.

Interest in this technology has increased significantly in recent months. Industry experts say this was driven partly by high utilization at TSMC’s factories and the complex geopolitical situation. Due to a lack of available capacity at the world’s leading contract manufacturer, many companies from China, India, and other countries have decided to use Samsung’s services instead.

Prospects and Future Plans

Smaller orders that TSMC cannot accept are also currently being directed to the South Korean giant. This is giving the company additional opportunities to strengthen its position. At the same time, Samsung continues to accept inquiries for its advanced 2-nanometer technology.

Nevertheless, the future success of the 2-nanometer segment will largely depend on how successfully yields can be improved and the new technology made attractive to mass-market customers. For now, the 5-nanometer process remains the most practical and stable compromise for the company and its customers.