Samsung Reportedly Secures First 2nm Chip Order From Japanese Startup Who Decided To Forego TSMC

Samsung and TSMC have locked horns in the 2nm chip race, with both foundry giants earlier said to be preparing samples for Qualcomm on the next-generation lithography. However, when it comes to securing actual orders, the Korean giant obtains a win in that column by bringing a Japanese startup into the fold. It is said that this research firm decided to skip TSMC for its 2nm technology, and we have a few reasons why it would make this decision.

Japanese startup PFN may serve as a bridge for Samsung to partner with bigger technology companies for 2nm chip orders

Preferred Networks (PFN) specializes in research and development of deep learning for IoT applications and it is considered the most advanced firm in Japan thanks to possessing resources and expertise in developing custom software and supplying supercomputers to various customers. The report from Seoul Economic Daily states that a potential partnership between PFN and Samsung will benefit both entities.

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PFN could gain access to newer chip technologies that will allow it to gain the edge against the competition, while Samsung could finally generate steam in its foundry business after trailing behind TSMC for years. Additionally, the report states that the alliance with PFN should open multiple gateways for Samsung, allowing it to start acquiring more customers for its 2nm chips. PFN is said to be tied up with NVIDIA and Intel, making it a powerful ally for Samsung.

It is also entirely possible that Samsung offered PFN an attractive discount for its 2nm wafers to lure in its first customer for the next-generation node. The company was previously reported to have explored this strategy to reduce the market share gap with its rival TSMC.

However, it is unconfirmed if the Korean giant has successfully solved the yield problem that supposedly continues to plague its 3nm GAA process. TSMC is known for