TSMC Reportedly Rejects Samsung’s Proposal for Exynos Production Using Advanced Lithography

Samsung’s challenges in raising yields for its 3nm GAA (Gate-All-Around) technology have been widely documented, with the Korean foundry struggling to move past a 20% success rate, despite aiming for 70%. In comparison, TSMC has reportedly reached a 60% yield for its own 2nm trial production. Against this backdrop, rumors surfaced suggesting Samsung might hand over some Exynos chip production to TSMC for better yields. However, new information indicates no such deal will materialize.

According to tipster @Jukanlosreve on X, TSMC declined Samsung’s alleged proposal, likely due to concerns about divulging proprietary know-how that keeps TSMC’s yields high. From TSMC’s perspective, collaborating might have risked handing over crucial insights to Samsung—particularly sensitive, given Samsung’s ambition to improve its own processes. Moreover, while TSMC could have technically filled Exynos orders and likely earned a premium for doing so, the company appears unwilling to make any arrangement that jeopardizes its competitive edge.

With TSMC off the table, Samsung must rely on internal progress to push 3nm yields to industry-standard levels. The Korean giant was recently reported to be developing a 2nm SoC codenamed ‘Ulysses,’ demonstrating that Samsung continues to invest in R&D for advanced processes. For now, though, the struggle to achieve healthy yield rates for its latest nodes remains a stumbling block as it tries to win back major customers like Qualcomm—currently favoring TSMC for chips like the Snapdragon 8 Elite Gen 2.

How do you see Samsung recovering from its yield issues without TSMC’s help? Share your thoughts in the comments below!