What does an 80% production yield mean?

Out of every 100 chips on a wafer, 80 work correctly and 20 are rejected. 80% is the "process maturity" threshold in the industry — meaning stable production costs and the ability to fulfill large-scale orders.

Why did Samsung take so long to achieve 80% on 4nm?

With six years of mass producing 4nm chips under its belt, Samsung has now reached process maturity. TSMC achieved this faster due to greater FinFET process experience. Samsung faced process control challenges that it gradually resolved.

Does this affect smartphone chipsets?

The 4nm node remains the "sweet spot" for most modern electronics — from high-end smartphones to automotive tech. Mature 4nm means Qualcomm, MediaTek, and Exynos chips of higher quality at more stable prices.

Will Samsung actually compete with TSMC?

At the 4nm level — yes, now. At 3nm and 2nm — Samsung is behind but advancing. TSMC still dominates major orders from Apple, Nvidia, and AMD.

What's the connection between 4nm yield and phone prices?

Higher yield = lower manufacturing cost per functional chip. This allows Samsung to offer lower prices to foundry customers or improve profit margins — which may ease pricing pressure on smartphones in H2 2026.

Samsung Foundry Surpasses 80% Yield on 4nm Chips — Process Maturity After 6 Years, Orders From Groq, IBM and Baidu, and HBM4 AI Foundation

Samsung Foundry and 4nm — Why 80% Is a Historic Milestone

Samsung Foundry has surpassed an 80% yield rate on its 4nm process — the golden standard for mass production, indicating that the vast majority of chips on a single wafer are functional and meet performance standards.

In semiconductor manufacturing, that is considered a sign of process maturity. As a result, Samsung Foundry is expected to attract more chip orders from major tech firms in the near future.

What Does This Yield Rate Mean?

A yield rate above 80% is considered the "golden standard" for mass production — indicating that a vast majority of the chips on a single wafer are functional and meet performance standards. This efficiency allows Samsung to offer more competitive pricing to foundry customers.

New Customers — Groq, IBM, Baidu and More

Groq, recently acquired by Nvidia, has already reportedly ordered Samsung to manufacture its Language Processing Units (LPUs) using the 4nm process. Ambarella, Baidu, Faraday, and IBM are also having chips manufactured using Samsung Foundry's 4nm process. South Korean firm Rebellion is using the process as well.

The Most Notable Use — HBM4 Foundation

Samsung's 4nm process is also notably used as the base die for sixth-generation HBM4 memory chips. The price of 12-inch wafers for HBM4 base dies has surged more than 50% from previous levels to over $20,000 (~30 million won) per wafer.

Impact on Samsung's Profits

With technical completion now on par with TSMC, the world's largest foundry, orders from global Big Tech firms are flooding into Samsung's 4nm line. Industry observers expect the division's return to profit to accelerate as a result.

Next Steps — 2nm and 1.4nm

Samsung Foundry is working to expand the production of 2nm chips for its clients. While the company did not name them, it is likely referring to Tesla, which has already placed a $16.5 billion order for 2nm AI6 chips.