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According to foreign media reports, the world's second largest chip foundry manufacturer Samsung Electronics foundry business unit (Samsung wafer foundry) has begun mass production of fourth-generation 4-nanometer (nm) chips.

It is reported that the process uses the back-end process (BEOL) wiring technology, which can improve the overall performance of the chip, and make the manufacturing process more cost-effective. Its next-generation 4nm process node also features high-speed transistors and supports next-generation packaging technologies such as 2.5D and 3D. The new process will be used to make AI chips for Elon Musk's AI company Grok, as well as for HyperExcel, a Korean fabless AI semiconductor chip company.

In the past, Samsung has competed fiercely with TSMC in introducing new semiconductor chip manufacturing technologies and producing chips using these processes. However, over the past few years, TSMC has further widened its lead, while Samsung has failed to attract customers like AMD, Nvidia and Qualcomm due to problems with its 5nm and previous-generation 4nm processes.

TSMC's market share in chip foundry manufacturing grows from 64.7 per cent in 2023 to 67.1 per cent in 2024, while Samsung's foundry market share falls from 9.1 per cent in 2023 to 8.1 per cent in 2024. In addition, Samsung's first- and second-generation 3nm processes have failed to secure any high-profile customers.

Under these circumstances, Samsung must ensure that its new chip manufacturing process can achieve the desired results. SF4X is expected to be a key weapon in the expansion of its foundry business. It is expected to play a key role in the recovery of Samsung's foundry business.