Samsung Electronics has made advances in its 2-nanometer chip manufacturing process but is experiencing yield issues that hinder mass production. Recent reports from South Korean industry sources reveal that Samsung’s foundry division averages a yield of approximately 55% on its 2nm Gate-All-Around process, falling short of the 60% threshold deemed necessary for stable mass production.
Yield levels between 50% and 60% indicate operational capability but highlight the challenges Samsung faces in achieving production stability. An insider noted, “the process is running, but it is still a long way from a stable mass production phase.”
[Exclusive] Samsung Foundry 2nm Yield at 55%… Stuck Below the 'Mass Production 60%' Threshold
Samsung Electronics' foundry business — a key future growth engine — has hit a wall at the '60% mass production' threshold for its 2nm (nanometer; 1nm = one-billionth of a meter)…
— Jukan (@jukan05) April 13, 2026
The effective yield is particularly concerning. Once backend packaging losses and performance binning are accounted for, the effective yield drops to roughly 40%. At this rate, nearly half of the produced wafers are discarded as defective, significantly impacting pricing and delivery reliability.
The costs associated with cutting-edge wafers mean that even marginal yield improvements can lead to substantial annual profit shifts, complicating Samsung’s ability to compete with TSMC. Reports indicate TSMC has achieved 2nm yields ranging from 70% to 80% since initiating mass production in late 2025.
Samsung’s recent yield improvements are notable, climbing from around 20% in the second half of 2025 to the mid-50s in under a year. This progress has been partly driven by orders for bitcoin mining chips from Canaan and MicroBT, which provided valuable process experience.
Despite these advancements, Samsung has struggled to attract major fabless customers that TSMC serves. TSMC’s order book for 2nm technology is reportedly filled through 2028 by leading companies including Nvidia, Apple, AMD, and Qualcomm.
Samsung’s significant $16.5 billion contract with Tesla, which entails producing the AI6 chip at its Texas fabrication plant, will serve as a crucial test of the company’s 2nm capabilities. Mass production is targeted for the second half of 2027, a timeline that has been delayed by approximately six months due to ongoing process maturity challenges.
Foundry chief Han Jin-man emphasized the necessity for Samsung to continue refining its processes, stating, “Samsung can build up order experience with major companies and secure yields through that process.”
