Samsung Electronics has begun efforts to attract new clients using its 5-nanometer process.

BlockBeats news, October 20 - According to South Korean media reports, Samsung Electronics' foundry (semiconductor contract manufacturing) division has started seeking new customers using its 5-nanometer (nm·one billionth of a meter) process, as its 4-nanometer process capacity is effectively fully operational.

Although contracts for the most advanced 2-nanometer process with global large tech companies have been delayed, this move aims to increase utilization rates centered on the relatively stable yield 4-nanometer and 5-nanometer processes, thereby improving profitability. According to semiconductor industry sources on the 20th, with recent increases in customer orders, Samsung Electronics' foundry division's 4-nanometer process capacity has effectively reached saturation. As a result, Samsung Electronics is expanding sales activities to attract new customers for its 5-nanometer process.

Analysts believe that Samsung Electronics' initiative to seek new customers for the 5-nanometer process is also in response to this demand shift. As 4-nanometer process capacity approaches saturation, the 5-nanometer process can be proposed as an alternative based on customers' performance and cost requirements. The ability to improve the utilization of existing production facilities is also a major advantage. Conversely, for the 2-nanometer process, which is the next-generation main process, securing major customers remains a challenge.

It is reported that Samsung Electronics is discussing semiconductor production contracts based on the 2-nanometer process with global large tech companies, but some negotiations are slower than initially expected. The most advanced processes require not only yield verification but also comprehensive validation of energy efficiency, design assets (IP), and stable mass production capabilities, so it takes considerable time before actual signing and mass production.