Chipmaker Samsung’s 3nm baking process has too low a yield to attract big customers. Even the company’s own divisions are reluctant to award contracts.

Samsung can’t convince major customers to place firm orders for its 3nm baking process. This chip manufacturing process is very advanced and theoretically ensures that microchips are more powerful and more economical than if they were baked on less advanced production lines. However, Samsung has struggled with the reliability and yield of its 3nm series.

Qualcomm, for example, would be willing to order from Samsung, but not as long as the return remains below 70 percent. Today the so-called yield at 50 percent. In other words, half of the chips on a wafer are not up to par when it rolls off the assembly line, or half of the wafers are worthless, as the case may be. In traditional agreements between chip maker and designer, the customer pays for all wafers, even those that do not meet requirements. That’s not very attractive with such a low return.

Preferred treatment

TSMC is also struggling with the yield of its 3nm production line, but is selling its capacity. Apple reserves the production line almost exclusively for a whole year. TSMC needs to do something about it. As an exception, both parties would have waived the classic revenue regulation. Apple only pays for the successful chips and TSMC covers the costs of the failures.

If Samsung wants to commercialize its 3nm process profitably, a few things need to change. Even Samsung’s LSI department, which builds chips for all kinds of applications, has doubts about the process, according to Wccftech.