According to TrendForce analysts, Samsung is encountering significant challenges in ramping up production of its Exynos 2500 mobile processors, which are manufactured using 3nm process technology. The reports indicate that Samsung's yield rate for viable products is slightly below 20%, primarily due to a high defect rate. In the first quarter of this year, Samsung's yield rate for 3nm chips was in the single digits, suggesting continuous, albeit slow, improvements in their manufacturing process. Despite these improvements, the volume of defect-free chips remains insufficient for mass production. It remains uncertain whether the Exynos 2500 processors will be used in future Galaxy S25 smartphones. Speculations suggest that all upcoming high-end devices might exclusively feature the Snapdragon 8 Gen 4.

For mass production efficiency, a defect rate below 40% is necessary. Reports indicate that Samsung's System LSI division is focused on enhancing the manufacturing process of viable Exynos 2500 chips in the latter half of this year. Samsung aims to achieve a 60% yield rate of usable chips by October.

Additionally, Samsung's main competitor, Taiwan's TSMC, is facing a surge in orders for 3nm chip production from clients such as Apple, NVIDIA, AMD, Qualcomm, Intel, and MediaTek. At the end of May, TSMC announced it had tripled its 3nm chip production capacity. However, even with this increased capacity, it still struggles to meet all the demand, posing significant challenges in fulfilling orders.

TrendForce's analysis highlights the competitive and technical difficulties faced by Samsung in the advanced semiconductor manufacturing landscape. The suboptimal yield rates not only hinder Samsung's production capabilities but also affect their market positioning against rivals like TSMC, which has managed to secure substantial orders from major technology firms. Samsung's strategic efforts to improve its yield rates involve meticulous adjustments to its manufacturing processes and possibly investing in new technologies or equipment to reduce the defect rates. The goal of reaching a 60% yield by October suggests a rigorous roadmap and substantial resource allocation towards achieving this benchmark.

The pressure on Samsung is further compounded by the aggressive advancements made by TSMC in 3nm technology. TSMC's ability to significantly boost its production capacity and secure high-profile clients underscores the competitive pressures in the semiconductor industry. The high demand for 3nm chips, driven by the need for more powerful and efficient processors in various applications, makes it imperative for Samsung to overcome its production hurdles swiftly.