Samsung Electronics is reportedly pushing back its 1.4nm process production timeline to 2028.

The delay marks a significant shift in the company’s chip manufacturing strategy, as initial plans had projected mass production to begin as early as the second half of 2026.

According to a report by Sedaily, the Korean tech giant has postponed construction of its 1.4nm production lines at Pyeongtaek 2, with no new start date announced.

The decision is part of a broader restructuring within Samsung Foundry, which has struggled to meet expectations in recent process generations.

The company’s 3nm gate-all-around (GAA) node was the first of its kind to enter production, but yield rates fell short of industry standards, hindering its commercial success.

2nm Process Gains Momentum With Promising Yield Rates

In contrast to the challenges with 3nm and 1.4nm, Samsung's 2nm process is reportedly making significant progress.

The company is now redirecting its resources toward accelerating the development of this node.

Samsung sees the 2nm technology as a more promising path forward, supported by what insiders describe as “positive” signs from recent testing phases.

Mass production of the 2nm process is expected to begin by the end of 2025, with plans already in place to expand manufacturing to Samsung’s Taylor facility in the United States by the first quarter of 2026.

This effort underscores Samsung’s intent to maintain its presence in the global chip race, despite setbacks in its most advanced nodes.

Samsung Foundry Struggles With Financial Losses and Reduced Investment

Samsung Foundry has reportedly posted losses over several consecutive quarters, adding financial pressure to the company’s semiconductor division.

As a result, Samsung has reduced its investment in the foundry business.

Analysts suggest this could indicate a contraction in the company’s overall chip ambitions.

Despite these setbacks, Samsung’s pivot to 2nm is seen as a strategic move to stabilize its foundry division.

Yield improvements in the 2nm process could provide the breakthrough Samsung urgently needs to compete with rivals like TSMC and Intel, both of which are making aggressive advances in semiconductor innovation.

Industry Competition Intensifies as TSMC Claims Over 60% 2nm Yield

Meanwhile, competition is heating up. Industry analysts claim TSMC has achieved yield rates exceeding 60% on its own 2nm process, placing pressure on Samsung to deliver a competitive product.

With Samsung delaying its 1.4nm node and TSMC pushing forward, the gap between the two companies could widen if the Korean firm’s 2nm production fails to scale as planned.

The outlook for Samsung Foundry remains uncertain. The coming months will be critical as the company ramps up its 2nm efforts and attempts to regain momentum in an increasingly competitive semiconductor landscape.

PHOTO: REUTERS/THOMSON

This article was created with AI assistance.