Samsung Foundry halts long-term ambition, receives much-needed orders from Tesla

Last year, it was revealed that Samsung planned on producing 1.4 nm chipsets by 2027. This was a very ambitious plan, as the foundry was struggling with 3 nm yields at the time. However, Samsung was able to stabilize that process, and has now made the 3 nm Exynos 2500 official. We will be seeing this processor in the Galaxy Z Flip 7, which will be unveiled next month.

Now, a report (translated source) has revealed that the company is pausing its plans for 1.4 nm chips. What was once slated for 2027, now may not even begin until 2028. For now, Samsung Foundry is focusing on perfecting its 2 nm process, which it wants to use for the Exynos 2600.

2 nm chips are here to stay

Samsung wants to perfect its 2 nm process because, according to the report, the foundry’s 2 nm yield is currently at 20-30 percent. That is not feasible, and may even delay Samsung’s plans to debut the Exynos 2600 in the Galaxy S26 line.

It’s also worth noting that Apple will be using 3 nm chips for the iPhone 17 series this year. Samsung’s largest rival in the smartphone space — at least in the U.S. — doesn’t plan on using 2 nm processors until the iPhone 18 series next year. As such, it’s not like Samsung will fall behind immediately if it’s unable to get its 2 nm yields sorted out soon.

Samsung manufacturing Tesla’s Dojo chips

One of the reasons that Samsung Foundry has been facing trouble recently is the lack of clients. Many companies choose to opt for foundries with a proven track record, like TSMC (Taiwan Semiconductor Manufacturing Company). However, Samsung’s lower costs are, understandably, an attractive option as well.

To that end, Samsung Foundry has allegedly received orders from Tesla to manufacture the Dojo chips using its 2 nm processes. This was first reported by The Elec — a Korean news site — but the article has been taken down and is “under review”. It wouldn’t be the first time that Samsung has asked for specific information to be removed.

A copy of the original news story can be read here, retrieved by renowned tipster and semiconductor analyst Jukanlosreve. The report claims that Samsung will resume work on its plant in Taylor, Texas, in hopes that it will be operational in time to fulfill Tesla’s orders. It is absolutely crucial that Samsung’s 2 nm yields should have improved by the time this plant goes online.

Samsung is okay, for now

While I’m sure that postponing the plans for 1.4 nm chip production must have stung, it hardly jeopardizes Samsung’s future. As mentioned earlier, Apple won’t even start using 2 nm chips until late next year. Samsung has plenty of time, and the jump from 2 nm to 1.4 nm would have hardly been revolutionary.

Modern chip measurements are marketing more than anything. If Samsung is able to perfect its 2 nm yields and deliver Exynos chips that can hold their own against Snapdragon, then the company will make it out just fine.

And, as it was able to do for its 3 nm process, I think it shouldn’t take long for Samsung to improve the yields of its 2 nm chip manufacturing. When that’s done, I hope that we’ll finally have an Apple silicon moment for Exynos.