Samsung Electronics' foundry business achieved its highest-ever first-quarter sales, thanks to solid demand from all applications and improvements in the yields of the advanced process, the vendor has claimed when announcing its financial results for the first quarter of 2022.
There has been speculation with regard to unsatisfactory yield rates for Samsung Foundry's 5nm and sub-5nm process manufacturing.
During a Q&A session at Samsung's earnings conference call on April 28, the company said that its advanced foundry process yields are stabilizing. Yield rates for Samsung Foundry's 5nm process manufacturing have reached mature levels. "In the case of 4-nano nodes, there was a bit of a delay in the initial yield ramp-up," said the company.
As for Samsung's 3nm GAA process development, the company said it is going through verification for each stage of development which will help shorten the yield ramp-up period. "We are back on the expected yield improvement curve since we have been focusing on early stabilization," Samsung noted when responding to a KB Securities analyst.
Samsung claimed the company "will solidify its technology leadership with the world's first mass production of the 3-nanometer GAA process and continue to win new customers." The company is on track to move its first-generation GAA process (3GAE) to mass production later this year, and continue developing its second-generation GAA process (3GAP) according to the planned schedule.
Samsung also denied speculation indicating it might skip 1b-nanometer DRAM process R&D and jump directly to 1c-nm process development. "It is not true that we have any plans of skipping 1b that's 12 nano and our mass production schedule is on schedule without any disruption," the company said.
Samsung reported consolidated revenue of KRW77.78 trillion (US$61.4 billion) for the first quarter of 2022, a record high for the third consecutive quarter. The company generated operating profits of KRW14.12 trillion during the quarter, up 51% from the same period in 2021.
Samsung indicated its device solutions (DS) division spanning semiconductor and components units generated record-high sales in the first quarter of 2022, while sales of its device experience (DX) division consisting of Samsung's mobile phone and home appliance businesses were the highest since 2013.
Looking in the second quarter, Samsung said that despite macro uncertainties and logistics issues, its DS division will work to meet solid demand while the DX division focuses on profitability. With uncertainties related to the macroeconomic environment and geopolitical issues likely to persist in the second half of 2022, Samsung continued it will prioritize increasing the portion of advanced processes for components and strengthen premium lineups in its DX division.
