Poor demand forces Samsung to abandon Exynos chip production

While other process nodes look defeated, the 2-nm may lure customers back to Exynos.

Samsung will be forced to pause some of its fabrication plants due to low demand of the Exynos chipset. But one of its plants will run as normal because it’s seen with a promising future.

Image credit: Samsung

According to a report, a South Korean media outlet revealed that the tech giant plans to close some facilities of its foundries, including:

  • 30% of the 3-nm facilities
  • 30% of the 5-nm facilities
  • 30% of the 7-nm facilities 

That figure may peak at 50% at the end of 2024. Despite the impressive performance of the Exynos 2400 Series, it couldn’t keep all facilities operational because the demand is way too low across the board.

Qualcomm and Nvidia, among many others, have transitioned to TSMC, leaving Samsung with a handful of customers. Why? Notable examples are the Snapdragon 888 and Snapdragon 8 Gen 1, which failed to hold up against rivals.

However, Samsung’s 3-nm process is promising and the 2-nm node is even better. The 2-nm may invite back Qualcomm for the creation of the Snapdragon 8 Gen 5. 

For now, the facilities will be put on power saving modes to limit operation costs.

Source

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