Samsung To Cut Chipmaking Investment By 50% As It Shifts Focus To Next-Gen Processes – Report

Samsung is substantially trimming its chip fabrication investment, according to a new report by Business Korea. Starting in 2025, the South Korean tech giant is concentrating on ramping up production for its 2-nanometer and next-generation 1.4-nanometer manufacturing technologies, rather than expanding older lines that produce 5-nanometer and other chip products. The report indicates that low yields and fewer orders have prompted Samsung’s strategic pivot, potentially creating more market room for Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker.

Samsung has already been at the forefront of advanced chip fabrication, taking the lead in producing early 3-nanometer products in 2022. Yet, it has encountered persistent yield challenges, with multiple media outlets alleging that the company’s current 3-nanometer chips still suffer from quality issues. Despite the booming demand for AI-centric semiconductors—fueled by companies like NVIDIA—Samsung has opted to reduce its investment from 10 trillion Korean won in 2024 to 5 trillion won in 2025.

These funds will be allocated toward crucial facilities: Hwaeseong, which produces 3-nanometer chips and will now be upgraded to handle the new 2-nanometer node, and Pyeongtaek, which will spearhead test production runs for the 1.4-nanometer process. This facility aims to produce up to three thousand 1.4-nanometer wafers per month, marking Samsung’s attempt to retain a technological edge in ultra-advanced manufacturing. A portion of the budget will also bolster Samsung’s chipmaking plant in Taylor, Texas, as the company shores up its global foundry operations.

Apple, Qualcomm, and other smartphone manufacturers remain primary drivers of 3-nanometer demand, with Apple’s devices leading the pack due to their massive annual production volumes. As 2-nanometer chips come online, both Samsung and TSMC are set to deploy new transistor designs—gate-all-around (GAA) for Samsung and nano sheet transistors for TSMC—each vying to cut down current leakage and boost performance.

How do you see Samsung’s focus on 2nm and 1.4nm shaping the future of mobile and AI chips? Jump into the comments and share your take on the next-gen chip battle!