Back in November 2024, Samsung Foundry started the mass production of its cutting-edge fourth-generation 4nm process node (SF4X). But when it comes to securing clients, the Korean firm meets significant challenges from its industry rival, TSMC. A key client, AMD, was supposed to use Samsung’s 4nm process on its semiconductors, but a fresh report now claims the deal has been cancelled. This is another setback for the foundry division, which is already struggling to secure clients for its HBM3E chips.
AMD reportedly backs out of Samsung 4nm deal
The SF4X process uses Back End Of Line (BEOL) wiring technology that features high-speed transistors and supports advanced packaging technologies like 2.5D and 3D. In recent years, the 4nm process has seen strong demand from domestic and foreign fabless firms developing AI semiconductors. Since the AI chips market is rapidly increasing, Samsung wants to become a leader in this space.
Industry analysts expect SF4X to be a key weapon for the foundry business as it stabilizes the yield. Unfortunately, Samsung is struggling to secure orders from its major clients, such as Nvidia and Apple. Earlier this year, the Korean media, The Bell, reported that AMD will produce its next-generation server central processing units (CPUs) input/output (I/O) dies using Samsung’s 4nm process. But now, the tipster @Jukanlosreve said that AMD has decided not to use Samsung Foundry’s SF4X process.
The Bell also added that AMD planned to use Samsung’s process in its input/output (I/O) dies due to the stability of the 4nm process. On top of that, AMD chose to use Samsung’s process because TSMC doesn’t have enough 4nm production capacity. TSMC mainly uses its 4nm process to make AI chips for Nvidia and AMD.
As of now, it’s unclear why AMD has canceled the deal with Samsung. However, losing big clients like AMD is bad news for Samsung as it is working hard to compete with its industry rival TSMC in the semiconductor race.
