In 2024, Samsung Electronics has set a critical goal: to secure orders from GPU giant NVIDIA in its foundry business. This goal is significant for Samsung's market position and business growth in the semiconductor industry. According to Korean media reports, Samsung's foundry division has internally launched the "Nemo" plan, prioritizing the acquisition of NVIDIA's 3nm orders as the top task for 2024. Various units are working all out to prioritize order-taking efforts related to NVIDIA.
Technical Challenges and Yield Improvement
Samsung Electronics faces a significant gap with TSMC in advanced process technology, particularly in the yield of the 3nm process. Currently, the yield of Samsung's second-generation 3nm Gate-All-Around (GAA) process is relatively low, directly affecting cost efficiency and product competitiveness. Industry experts believe that Samsung's ability to successfully mass-produce the second-generation 3nm GAA technology in the first half of 2024 hinges on securing orders for NVIDIA's products. This success is crucial for narrowing the gap with TSMC. Thus, it is reported that Samsung's foundry division is sparing no effort to further ensure the yield of the second-generation 3nm GAA technology. A Korean market analyst noted that the instability risks in 2024, such as earthquakes, present the best opportunity to close the gap with TSMC.
image：Competing for NVIDIA's Order, Samsung Goes All Out!
Rebuilding Customer Trust
Samsung needs to rebuild its trust relationship with NVIDIA. Although Samsung has previously manufactured some products for NVIDIA, most of NVIDIA's advanced process chip orders have been handed over to TSMC. Samsung must demonstrate its strength and advantages as a reliable foundry partner.
Opportunities in Supply Chain Diversification
The diversification of the global semiconductor supply chain presents new opportunities for Samsung. TSMC's high production concentration in Taiwan means that geopolitical or natural disaster risks could affect supply chain stability. Samsung can demonstrate its value as an important partner in a diversified supply chain.
Potential Cooperation in the HBM Memory Field
Samsung's technical prowess in the high-bandwidth memory (HBM) field and the ongoing negotiations with NVIDIA for HBM3E supply indicate further cooperation potential. Samsung's expertise in HBM technology provides a solid foundation for expanding cooperation.
Strategic Positioning and Market Opportunities
Samsung's strategy is to narrow the gap with industry leaders by securing NVIDIA's 3nm orders. At the same time, Samsung is seeking the advantages of supply chain diversification and increasing investment in the HBM business to maintain market competitiveness.
Conclusion
In summary, Samsung Electronics is actively addressing challenges through technological innovation, rebuilding customer relationships, diversifying the supply chain, and cooperating in the HBM field to establish a leading position in the semiconductor industry. These efforts not only demonstrate Samsung's pursuit of innovation and market competitiveness but also reflect its commitment to sustainability and market resilience, laying a solid foundation for future growth.
