Samsung Electronics is now leveraging its 5-nanometer process technology to attract new clients.

According to South Korean media reports, Samsung Electronics' Foundry Business Division, which handles semiconductor contract manufacturing, has begun targeting new customers for its 5-nanometer (nm, one billionth of a meter) process, as its 4-nanometer process capacity is already fully operational. While contracts for its most advanced 2-nanometer process with global large tech firms have been delayed, the move aims to boost production utilization centered on its 4-nanometer and 5-nanometer processes—boasting relatively stable yields—to improve profitability. Per semiconductor industry sources on the 20th, Samsung Foundry’s 4-nanometer process capacity has effectively reached saturation amid a recent rise in customer orders. As such, Samsung is expanding its sales efforts to attract new clients for its 5-nanometer process. Analysts note that this push for 5-nanometer customers is also a response to the demand shift: with 4-nanometer capacity nearing saturation, the 5-nanometer process can be offered as an alternative to meet clients’ performance and cost requirements, while also lifting utilization of existing production facilities. Conversely, securing major customers for its 2-nanometer process—its next-generation flagship technology—remains a key challenge. Samsung is in talks with global large tech firms for semiconductor manufacturing contracts based on its 2-nanometer process, but some negotiations are progressing slower than initially anticipated. Advanced processes require not only yield verification but also comprehensive validation of energy efficiency, design intellectual property (IP), and stable mass production capabilities, making the timeline to finalize contracts and launch mass production considerably long.