There is a new South Korean report that paints a bleak image of Samsung’s close to future in a single explicit regard. Whereas the continued RAM scarcity is driving earnings approach up for Samsung in Q1 2026, there’s a scarcity of corporations that will wish to do enterprise with Samsung Foundry.
The 60% yield barrier
The Exynos 2600 was unveiled in 2025. | Picture by Samsung
Per the machine-translated report, Samsung’s foundry enterprise is outwardly caught on the “60% mass manufacturing” barrier in its 2nm course of. A single nanometer, or 1nm, equals one-billionth of a meter and in chips it principally refers to how tiny and superior the transistors are. The smaller the quantity, the extra highly effective and environment friendly the chip might be, as a rule of thumb.
Now, the Galaxy S26 and the Galaxy S26 Plus which can be being bought in Europe, for instance, have a 2nm chip on board (the Exynos 2600). Their counterparts which can be bought within the US, however, include the 3nm Snapdragon 8 Elite Gen 5.
Now, you may say that because the Exynos 2600 is a 2nm chip, it’s total “higher” than the 3nm Snapdragon 8 Elite Gen 5. Not so quick: US shoppers all the time get the most effective {hardware} doable, so this chip duality simply goes to indicate that Samsung is not absolutely satisfied of its Exynos 2600 powers.
The larger image
So, Samsung’s chip-making arm is caught under the extent wanted for clean 2nm manufacturing, with too many chips failing to fulfill high quality requirements. Meaning the method will not be but dependable or low-cost sufficient for giant purchasers like Apple to totally commit.Till yields enhance, Samsung could have a tough time competing with TSMC on the leading edge.
Per the newest stats, Samsung is caught within the mid-50% vary yield. After accounting for backend processes, the efficient yield is predicted to fall to round 40%.
It is nice that we have moved to the 2nm node stage, however the course of is not clean and issue-free proper now.
An business insider conversant in the scenario mentioned that yields are at the moment within the 50–60% vary, averaging about 55%.
Enhancing quick(er)
Issues may appear unhealthy, however in actuality, Samsung has been advancing.Till the second half of final yr, Samsung’s 2nm yields had been reportedly caught within the 20% vary. That is very low.
In lower than a yr, they’ve risen to the mid-50% degree, which is taken into account technically ample to function a manufacturing line. This enchancment is believed to be pushed partially by orders for bitcoin mining semiconductors from Chinese language corporations similar to Canaan and MicroBT, which helped accumulate course of expertise.
Given the problem of the ultra-fine 2nm node, some view this charge of progress as distinctive.
What’s the issue?
With defect charges nonetheless excessive, almost half of produced chips are unusable, making the method weak in each price competitiveness and reliability.
After further losses from sorting and packaging, solely about 40% of chips may very well be sellable, and given the excessive price of superior wafers, even small yield adjustments can swing earnings massively. At this degree, the method is functioning however not secure sufficient for patrons to depend upon, particularly with considerations round consistency and supply.
The place is TSMC?
On the similar time, TSMC is reportedly reaching stronger 60–70% yields at 2nm, placing Samsung Electronics in a transitional place — technically advancing however not but aggressive for main purchasers like Apple, NVIDIA or AMD.Whereas some smaller and inner orders are in place, and tasks like Tesla’s AI6 chip are deliberate, total success will depend upon whether or not yields enhance sufficient.
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