On the broad stage of the global semiconductor industry, every move of Samsung Electronics is like a boulder entering the water, stirring up layers of waves. Recently, Korean media said that Samsung Electronics will close 30% of the 4nm, 5nm and 7nm advanced process production lines in the P2 and P3 factories in Pyeongtaek, Korea, which has undoubtedly aroused widespread attention and discussion around the world. This decision not only marks a profound reflection and strategic adjustment of Samsung in the field of advanced process technology, but also reveals the severe challenges it faces in the wafer foundry market and the urgency of exploring the way forward.
Samsung Electronics, as a giant in the global semiconductor industry, has always been committed to technological innovation throughout its development. In the field of wafer foundry, Samsung has adopted an aggressive strategy of "building a wafer factory first and then receiving orders", intending to rapidly expand production capacity through large-scale investment and construction, so as to form a strong competition with traditional giants such as TSMC in the market. However, the gap between ideals and reality is often difficult to bridge. Although Samsung has invested heavily in advanced process technology, the performance of its products in key indicators such as energy efficiency and yield has not met expectations in the actual competition, resulting in repeated setbacks in winning high-end customers and orders.
Figure: Samsung will shut down 30% of the 4nm, 5nm and 7nm advanced process production lines at its P2 and P3 factories in Pyeongtaek, Korea
Specifically, Samsung's dilemma in advanced manufacturing processes is mainly reflected in two aspects: one is the yield problem caused by technical bottlenecks, and the other is the energy efficiency disadvantage in the market competition. The yield problem is directly related to the production cost and product delivery ability, and is the lifeline of semiconductor manufacturing enterprises. Energy efficiency, on the other hand, directly determines the performance of the chip in the end application, and is an important consideration for customers when choosing suppliers. Samsung's shortcomings in these two aspects make it difficult to form an effective competitive advantage in the face of strong competitors such as TSMC, which in turn leads to low capacity utilization and deterioration of financial status of advanced process production lines.
Take the Foundry business unit of Samsung Electronics' DS division as an example, which had a huge deficit of nearly 2 trillion won (about 10.668 billion yuan) last year, which is undoubtedly a heavy blow to Samsung's advanced process strategy. Faced with this situation, Samsung had to make a painful but necessary decision to optimize resource allocation and reduce unnecessary capacity waste by shutting down some production lines, in order to be able to more accurately identify market demand and improve competitiveness in the future.
Pyeongtaek P3 Factory, an important base for Samsung's semiconductor business, covers an area of 128,900 square meters and is not only responsible for the task of advanced process foundry, but also a production base for key products such as DRAM memory and NAND flash memory. The closure of some production lines will undoubtedly have a profound impact on the operation of the P3 factory and the entire Samsung semiconductor business. At the same time, Samsung's original plan to further expand its foundry capacity at the P4 and P5 new factories in Pyeongtaek has also been effectively suspended due to the postponement of equipment import orders, which undoubtedly further exacerbates Samsung's difficulties in the field of advanced processes.
However, there is often a turning point in the midst of a difficult situation. While Samsung is facing challenges, it is also actively seeking a way out. At the technical level, Samsung is increasing R&D investment, strengthening technical cooperation with the world's top scientific research institutions, and striving to make breakthroughs in key technology fields, establish technical barriers, and expand the scope of application. In addition, Samsung has also made multiple efforts in the upstream, midstream and downstream links of the chip industry, and has quickly become one of the innovation leaders in the global chip field by integrating industrial chain resources and enhancing overall competitiveness.
However, it is worth noting that Samsung also faces considerable challenges in the field of mature processes. Although it tries to use its capacity advantage to attract Korea and Chinese design companies, these companies often directly compare Samsung's process technology with TSMC's corresponding nodes when choosing partners. This comparison not only reflects that Samsung still needs to improve key indicators such as yield and energy efficiency in the mature process area, but also reveals Samsung's delicate position in the global semiconductor supply chain, which is both an indispensable link and faces fierce competition and pressure from all parties.
Despite the challenges, the number of Samsung Electronics' patents worldwide has shown an accelerated upward trend, which is partly a testament to Samsung's continued investment and achievements in technological innovation. Samsung's global strategic adjustment will not only have a far-reaching impact on the company's own operation, but also play an important role in the global chip industry and regional economic development.
To sum up, Samsung Electronics' decision to close the advanced process production lines of multiple fabs is a profound reflection and strategic adjustment in the face of market and technological challenges. Although this decision may bring certain financial pressure and supply chain fluctuations in the short term, in the long run, it provides an opportunity for Samsung to find a new way out and achieve transformation and upgrading in the field of advanced processes. In the future, whether Samsung can make breakthroughs in technological innovation, market expansion, and industrial chain integration will directly determine its status and influence in the global semiconductor industry. And all of this will take time to verify and witness.
