Why Samsung Foundry Struggles to Keep Up with TSMC in 2024?

That report was especially bad news for Samsung Foundry, which has had a tough time keeping up with the likes of Taiwan Semiconductor Manufacturing Company (TSMC) in the cutthroat business of chip manufacturing.

Although Samsung took the lead in adopting the advanced 3nm gate-all-around (GAA) technology, it has faced yield issues and production inefficiencies. These issues have greatly handicapped its opportunities to obtain big client deals, and TSMC was more than ready to step into the gap.

Samsung

Samsung Struggling Against TSMC

In other words, TSMC has earned itself a sturdy reputation for being able to deliver fast and reliably. So, they quickly become the partner of many High-Tech Giants like Apple Nvidia, and Qualcomm. In the competitive world of AI and the demand for more processing power, each of these companies would have a need/desire to go with TSMC for their 3nm process because the performance characteristics seem to be better.

image 44 Why Samsung Foundry Struggles to Keep Up with TSMC in 2024?

Importantly, Google shifting its future SoC fabrication over to TSMC from Samsung’s advanced process nodes instead of using Samsung as in the case of previous generations’ Tensor chips will be a significant loss for Samsung as it loses out on key clients which would no bode well especially since until recently Google was facing volume availability issues.

These problems have led TSMC to claim about 60% of the world’s semiconductor foundry market while Samsung is down to about 11.5%. All of this underscores the long road that Samsung has ahead if it hopes to claw its way back into contention. To tackle these challenges, Samsung is speeding up the development of its next-generation nodes, starting with 2nm which will adopt new technologies like Backside Power Delivery (BSPDN).w These developments are expected to enhance energy efficiency and performance, both key in winning future contracts.

image 45 Why Samsung Foundry Struggles to Keep Up with TSMC in 2024?

TSMC, on the other hand, is continuing to progress and win over leading tech companies as partners making it hard for Samsung to catch up. This allows Samsung to keep in front of the rapid industry innovation cycles it can now persist but enables Samsung senior executives to double down and fix its production inefficiency/manufacturing capability.

In the end, what determines whether Samsung has a future in this market is if it can solve these production issues and innovate quickly. With demand for premium power-efficient chips on the rise, Samsung is under pressure to keep up with TSMC. The results of that competition will matter as much for the future of tech and how chips flow across the globe as anything ever has, so what Samsung does next is crucial to its position in an evolving semiconductor landscape.

FAQs

What process technology does Samsung use for its chips?

Samsung uses 3nm gate-all-around (GAA) technology for its advanced chips.

What market share does TSMC hold?

TSMC holds about 60% of the global semiconductor foundry market.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More like this

Samsung Galaxy A Series

Samsung’s AI Revolution: Galaxy A Series Now Packs “Awesome...

Samsung’s AI Revolution: Remember when cutting-edge AI features were exclusively for those willing to spend $1000+ on...
Smart Samsung Cooling: Goodbye Sleepless Summers with Style!

Smart Samsung Cooling: Goodbye Sleepless Summers with Style!

Imagine a world where your air conditioner and fan work in perfect harmony, creating the ideal sleeping...
Galaxy Tab S10 FE

Samsung Galaxy Tab S10 FE Series Launches in India:...

Samsung Galaxy Tab S10 FE Series launches in India: Are you ready to experience Galaxy AI without...
Samsung Bespoke AI Laundry Vented Combo: Revolutionizing Home Laundry in 2025

Samsung Bespoke AI Laundry Vented Combo: Revolutionizing Home Laundry...

Laundry day. Those two words often trigger a collective groan from households everywhere. The sorting, the washing,...
Samsung Smart Refrigerator: The Future of Kitchen Technology with AI and Screens

Samsung Smart Refrigerator: The Future of Kitchen Technology with...

In a world where our phones, cars, and even doorbells are getting smarter, Samsung is making sure...

LATEST NEWS

IPL 2025: SRH vs GT – Preview, Prediction, Starting XI and Where To Watch The Match LIVE

Sunrisers Hyderabad are set to take on Gujarat Titans in Match 19 of IPL 2025 at the Rajiv Gandhi International Stadium in Hyderabad on...

IPL 2025: Archer, Sandeep and RR Batters Fire to Hand PBKS First Loss

Yashasvi Jaiswal piling on the runs. Jofra Archer carrying forward the rhythm he rediscovered against Chennai Super Kings. Maheesh Theekshana and Wanindu Hasaranga finding...

ISL 2024-25 Semifinal: FC Goa vs Bengaluru FC – Preview, Prediction and Where To Watch The Match LIVE

FC Goa are set to welcome Bengaluru FC to the Jawaharlal Nehru Stadium in Goa for the second leg of their Indian Super League...

Top 5 Footballers Who Played for Both Manchester United and Manchester City

In this blog post, we’ll explore the fascinating stories of footballers who played for Manchester United and Manchester City. We’ll focus on primary keywords...

Featured