Understanding “Yield” in Semiconductor Manufacturing

The term “yield” in the context of semiconductor manufacturing refers to the percentage of usable chips produced from a silicon wafer that pass quality control tests. A low yield not only raises the cost per chip but also affects profit margins and supply availability.

TSMC’s 2nm Progress

TSMC, the world’s leading contract foundry, is set to start mass production of 2nm chips next year. A trial run at TSMC’s fab in Zhuke Baoshan, Hsinchu County, Taiwan, has already demonstrated yields of 60% or higher. This achievement is a strong indicator that yields could reach the required 70% or more for mass production by next year.

Apple is expected to continue using TSMC’s 3nm node for the 2024 A19/A19 Pro processors in the iPhone 17 line, but speculation suggests that next-generation iPads in late 2025 and iPhones in 2026 may feature 2nm chips.

Why Process Nodes Matter

As process nodes shrink, transistors become smaller, increasing both transistor count and density. This typically results in more powerful and energy-efficient chips. The 2nm node includes advancements like:

• Higher performance
• Improved energy efficiency
• Reduced leakage currents

Gate-All-Around Transistors: A Game Changer

TSMC’s 2nm node introduces Gate-All-Around (GAA) transistors. These transistors use horizontally stacked nanosheets to surround the channel on all four sides, unlike the previous FinFET design, which covered only three sides. The benefits of GAA transistors include:

• Reduced leakage
• Higher drive currents
• Enhanced performance

Challenges for Samsung Foundry

While TSMC is making significant progress, its competitor, Samsung Foundry, faces challenges with its 2nm yields. Reports suggest yields are between 10% and 20%, leading to speculation about the viability of Samsung’s Exynos 2600 chip. This is reminiscent of past issues in 2022 when Samsung lost Qualcomm’s business due to low yields for the Snapdragon 8 Gen 1 processor.

What Lies Ahead

As TSMC moves closer to commercializing its 2nm chips, the implications for the tech industry are immense. With higher yields and cutting-edge transistor technology, TSMC is poised to strengthen its position as a leader in semiconductor manufacturing.

Meanwhile, Samsung Foundry must address its yield challenges to remain competitive in the race for advanced process nodes.