Samsung vs TSMC, Taiwan's 'Nerve Battle' Over Developing Advanced 3nm Process

Samsung Electronics Pyeongtaek Campus

[Asia Economy Reporter Jeong Hyunjin] As Samsung Electronics and Taiwan's TSMC compete in a speed race to develop advanced 3-nanometer (nm; 1 nanometer is one billionth of a meter) foundry (semiconductor contract manufacturing) processes, a Taiwanese market research firm has evaluated Samsung Electronics' 3nm semiconductor technology roadmap as lacking realism. This appears to be an under-the-table battle amid fierce hegemony competition between Korea and Taiwan over the foundry market.

According to industry sources on the 21st, Eric Chen, a researcher at Taiwanese market research firm Digitimes Research, recently analyzed Samsung Electronics' ultra-fine process competitiveness in a report and stated, "It is unlikely that Samsung Electronics will transition to mass production of the 3nm Gate-All-Around (GAA) process by 2023." Digitimes Research expects that since Samsung Electronics is introducing the GAA process for 3nm product development, securing yield accordingly will not be easy until next year, and that verification of GAA technology will have to wait until after 2023.

GAA is a next-generation process technology that improves the semiconductor transistor structure. The transistor, a key component of semiconductors, is a kind of switch that controls the flow of current. When voltage is applied to the gate, current flows through the channel between the source and drain, enabling operation. Previously, FinFET technology was applied, where the gate and channel contact on three sides. GAA advances this by expanding the contact area between the gate and channel to four sides, allowing application even to processes below 4nm.

Currently, Samsung Electronics and TSMC have chosen different approaches for the 3nm process. TSMC uses the existing FinFET process, while Samsung Electronics has chosen the GAA process. TSMC is reported to first succeed in mass production of 3nm by maximizing the use of existing technology rather than new technology, and then introduce GAA technology starting from 2nm. In contrast, Samsung Electronics, chasing TSMC, aims to take the lead in technology by being the world's first to adopt the GAA process.

Samsung Electronics stated during a conference call following its Q2 earnings announcement on the 29th of last month, "GAA is planned to be applied to the first generation of 3nm mass production next year and the second generation of 3nm mass production in 2023, and the process is being developed without delay," adding, "Customers are already designing products using the first generation 3nm GAA process." They expressed confidence that technology development is proceeding as planned and that mass production will begin next year, demonstrating technological superiority ahead of TSMC.

In the context of fierce competition between the two companies over advanced processes, some interpret the Taiwanese market research firm's claim that Samsung Electronics' roadmap lacks feasibility as a kind of psychological warfare. The Taiwanese IT media Digitimes, to which Digitimes Research belongs, previously published a 10-part series comparing and analyzing the ultra-fine process competitiveness of TSMC and Samsung Electronics, evaluating that "Samsung Electronics has no chance of beating TSMC within 10 years."

According to market research firm TrendForce, in the first quarter of this year, TSMC recorded a 55% market share in the foundry market, ranking first, while Samsung Electronics ranked second with 17%.

This content was produced with the assistance of AI translation services.