Samsung is experiencing serious activity in the 4 nanometer production process, especially due to high demand from the memory market. According to information in the Korean press, the Samsung Foundry unit managed to receive new orders dating back to 2027.

Industry sources state that production stability in the 4 nanometer process is one of the main factors supporting this demand. This technology continues to expand with various versions such as SF4X, developed for high-performance computing chips.

Increased Capacity Usage in Samsung’s 4 Nanometer Process

4 nanometer technology, which has been in mass production since 2021, is used today in different iterations such as SF4E, SF4P, SF4X and SF4A. SF4X technology, which especially includes advanced back-end processes, focuses on high-performance computing chips.

According to information provided by ZDNet Korea, production lines are currently operating at full capacity and orders extend into next year. Production stability exceeding expectations increases global customers’ interest in Samsung.

Previous reports indicated that the 4-nanometer process had reached an 80 percent efficiency rate and was in high demand from major technology companies. It is claimed that giants such as NVIDIA and Google are also interested in this production process.

HBM4 Memory Demand and Financial Prospects

Another important reason for Samsung’s increased chip production is the increasing demand for HBM4 memories. The company announced in February that it started shipping the first commercial HBM4 memory products and started mass production.

While the 4 nanometer process is used in the logic layer of HBM4 memories, the chips themselves are produced with the 1c process. Rival company SK hynix introduced the 16-Hi HBM4 memory package at the CES fair held at the beginning of the year.

Strong orders are expected to have a positive impact on the financial structure of the Samsung Foundry unit. It is estimated that the unit can achieve profitability in the second half of this year.

However, it is not yet clear whether the new orders will be produced in facilities in South Korea or at the Taylor factory in Texas, USA.

The impact of Taylor facility installation costs on total profitability may vary depending on accounting processes. What do you think about Samsung’s strategic moves in chip production?