8nm Becomes Samsung’s Sweet Spot as the 2nm Era Approaches

Samsung Foundry has been having troubles with its advanced fabrication processes, particularly the 3nm node. However, when it comes to older mature processes, the Korean firm continues to receive large orders from key clients. Its 8nm process has proven to offer the best cost-effectiveness, and the industry now describes it as Samsung’s sweet spot.

Samsung’s 8nm node hits a sweet spot in cost and performance

As of now, Samsung’s most popular foundry processes are 5nm, 8nm, and 14nm. A Samsung official recently said (via ZDNet Korea), “Many clients often seek out Samsung Electronics’ foundry 5nm and 8nm processes. I heard that the yield has stabilized to a level where there are no issues when using the process.”

While all three nodes offer stable performance and good yields, Samsung’s 8nm process is gaining traction in its semiconductor portfolio. It offers the best balance between cost and performance, making it appealing for mid-range applications. While 5nm performs the best, it’s costly, and 14nm is cheaper but less powerful. This puts 8nm in the middle, making it a popular choice among foundry customers.

For instance, Samsung secured a deal to make Nintendo Switch 2’s chip using its 8nm process. This is a big win for the Korean foundry, as TSMC supplied chips for Nintendo’s previous-generation console. Nintendo aims to sell 15 million units of the Switch 2 by March next year, which will result in large chip manufacturing orders for Samsung. Furthermore, it has recently secured a deal with a European semiconductor startup for manufacturing a general-purpose chip using an 8nm node.

It’s good to see that Samsung is attracting clients for its mature nodes, which have helped the company maintain its second spot in the foundry market. However, when it comes to cutting-edge processes, it is still struggling to catch up with arch-rival and industry leader TSMC.

As the 2nm era approaches, Samsung now desperately wants to secure major clients so it can start mass production without delay. It will reportedly produce chips for Japan’s PFN (Preferred Networks) and domestic AI semiconductor startup DeepX. But these clients are not as big as TSMC’s 2nm customers — Nvidia, Apple, AMD, and Qualcomm. Only time will tell if Samsung can bounce back in the semiconductor business during the 2nm era.