TSMC Reportedly Rejects Samsung Exynos Outsourcing Deal Over IP Concerns
Taiwan Semiconductor Manufacturing Company (TSMC) has reportedly declined a proposal to mass-produce Samsung’s new flagship Exynos series chips, ending speculation about a potential partnership between the two semiconductor giants. The information originates from a now-deleted post by South Korean tech blogger @Jukanlosreve and was subsequently reported by Chinese media outlet Icsmart. Previous rumors had indicated that Samsung was considering outsourcing production to TSMC due to significant manufacturing challenges. Samsung is currently struggling with low yields of approximately 20% on its second-generation 3nm Gate-All-Around (GAA) process, falling far short of its 70% target. In contrast, TSMC’s upcoming 2nm process has reportedly achieved a 60% yield. Sources cited in the report suggest that TSMC’s refusal stems from serious concerns regarding intellectual property protection. Specifically, TSMC fears that collaborating with Samsung could allow the Korean competitor to gain insights into proprietary trade secrets, particularly those related to maintaining high production yields. Such knowledge transfer could potentially provide Samsung with a competitive advantage in future semiconductor development, prompting TSMC to reject the outsourcing deal to safeguard its technological edge.
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TSMC Reportedly Rejects Samsung Exynos Outsourcing Deal Over IP Concerns
Taiwan Semiconductor Manufacturing Company (TSMC) has reportedly declined a proposal to mass-produce Samsung’s new flagship Exynos series chips, ending speculation about a potential partnership between the two semiconductor giants. The information originates from a now-deleted post by South Korean tech blogger @Jukanlosreve and was subsequently reported by Chinese media outlet Icsmart. Previous rumors had indicated that Samsung was considering outsourcing production to TSMC due to significant manufacturing challenges. Samsung is currently struggling with low yields of approximately 20% on its second-generation 3nm Gate-All-Around (GAA) process, falling far short of its 70% target. In contrast, TSMC’s upcoming 2nm process has reportedly achieved a 60% yield. Sources cited in the report suggest that TSMC’s refusal stems from serious concerns regarding intellectual property protection. Specifically, TSMC fears that collaborating with Samsung could allow the Korean competitor to gain insights into proprietary trade secrets, particularly those related to maintaining high production yields. Such knowledge transfer could potentially provide Samsung with a competitive advantage in future semiconductor development, prompting TSMC to reject the outsourcing deal to safeguard its technological edge.
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