Samsung Foundry, the world's second-biggest contract chip manufacturer, has started the mass production of fourth-generation 4nm chips. The mass production of first-generation 4nm chips was started in 2021, and since then, Samsung has introduced improvements to that node almost every year.

Samsung's fourth-generation 4nm chips bring improved performance

According to a report from ZDNet Korea, Samsung Foundry has started the mass production of semiconductor chips using its fourth-generation 4nm process node (SF4X). It is said to feature Back End Of Line (BEOL) wiring technology that improves the overall performance of the chip and makes the manufacturing process cost-effective.

The new version of its 4nm process node also features high-speed transistors and supports next-generation packaging technologies like 2.5D and 3D. This new process will be used to make AI chips for Elon Musk's AI firm Grok and South Korean fabless AI semiconductor chip firm HyperExcel.

In the past, Samsung fiercely competed with TSMC in launching new semiconductor chip manufacturing technologies and shipping chips using those processes. However, over the past couple of years, TSMC has widened the gap, and Samsung failed to attract customers like AMD, Nvidia, and Qualcomm due to issues related to its 5nm and previous-generation 4nm processes.

TSMC's market share in the contract chip manufacturing space increased from 64.7% in 2023 to 67.1% in 2024, while Samsung Foundry's market share dropped from 9.1% in 2023 to 8.1% in 2024. Moreover, Samsung has failed to get any big-name clients for its first-generation and second-generation 3nm processes.

In this situation, Samsung must ensure that its new chip fabrication performs as expected. SF4X is expected to become a key weapon in expanding its foundry business.

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