Samsung's utilization rates for advanced nodes reportedly reaching 90%

Jessica Tsai, Taipei; Jingyue Hsiao, DIGITIMES Asia 0

Credit: AFP

Thanks to the increasing demand for AI and automotive electronics, it is reported that the utilization rate of Samsung's foundry business is exceeding 90%, as Samsung secures more orders for its advanced processing nodes.

ET News quoted sources reported that the utilization rate for Samsung's foundry business for 5nm is about 80%, and the combined utilization rate for 5nm and 7nm processes reached 90%, up from 60% in 2022.

According to the report, the improving utilization rate can be attributed to two factors. First, due to the rising demand for AI and automotive chips, fabless semiconductor suppliers in South Korea and worldwide, such as Rebellions and Ambarella, are expanding their orders to Samsung. Besides, the rising yield of Samsung's 5nm and 7nm processes also contributed to the utilization rates of the foundry business.

Meanwhile, WCCFtech quoted ZDNet Korea saying that a significant customer in the data center industry had placed orders for Samsung's 4nm process after Samsung experienced improvements in its foundry business, particularly in yield rates. The report also said that the yield of Samsung's 4nm processes, such as 4LPP and 4LPP+, had reached a level similar to that of TSMC.

Business Korea reported that the yield rates for Samsung's 4nm process reached above 75%, and that of Samsung's 3nm process is expected to reach more than 60%.

As the chip industry is experiencing a cyclical downturn, ET News quoted industry insiders saying that orders that were previously postponed or canceled due to the lackluster economy are gradually recovering, and Samsung's increasing utilization rate is expected to have a positive impact on the industry.