Samsung Begins Mass Production of Exynos 2500 on 3nm Process Despite Yield Challenges

Samsung has officially initiated mass production of its next-generation mobile processor, the Exynos 2500, based on its second-generation 3nm Gate-All-Around (GAA) technology, according to reports from South Korean media outlet Thebell. The chip is expected to debut in Samsung’s entry-level foldable phone, the Galaxy Z Flip FE, set for release in the second half of 2025.

However, significant hurdles remain. Despite beginning production, yield rates for Samsung’s 3nm GAA process are reportedly below expectations, limiting initial monthly output to just 5,000 wafers.

Yield Issues Delay Exynos 2500 Launch Plans

Samsung had originally planned to integrate the Exynos 2500 into the upcoming Galaxy S25 flagship series, with mass production initially slated for the latter half of 2024. However, the poor yield rate of only 20% significantly delayed the timeline. Due to this setback, the Galaxy S25 series is now expected to feature only Qualcomm’s Snapdragon 8 Elite processors.

Recent reports suggest that yield rates for the second-generation 3nm GAA technology have improved but still remain under 50%, barely meeting Samsung's internal demand for upcoming devices. Wafer testing is scheduled to begin as early as March, focusing on evaluating wafer characteristics and quality for defects. Two external firms, NepassArc and Doosan Tesna, have been commissioned to handle these tests.

Initial Production Volumes and Future Plans

Industry sources suggest that while initial monthly production is capped at 5,000 wafers, output could potentially drop to between 3,000 and 3,500 wafers due to ongoing yield issues and the high costs associated with production.

The Exynos 2500 is expected to be integrated into Samsung’s upcoming Galaxy Flip FE and possibly a more affordable version of the Galaxy S25 series. Given Samsung’s ambition to compete with industry leader TSMC in advanced chip manufacturing, the company is under pressure to resolve the production hurdles quickly.

Looking Ahead: Samsung’s 2nm Ambitions

In addition to improving its 3nm process, Samsung is aggressively pursuing development on its 2nm process node (SF2). Early tests of the Exynos 2600, manufactured using Samsung's 2nm process, reportedly show an initial yield rate 30% higher than expected.

Samsung plans to begin 2nm mass production by late 2024. This new process is expected to bring:

12% improvement in performance

25% boost in power efficiency

5% reduction in chip size

The Exynos 2600 is anticipated to power Samsung’s Galaxy S26 series, set for launch in the first quarter of 2026.

Samsung’s Strategy and Industry Confidence

Samsung remains optimistic about the competitiveness of its GAA technology and advanced packaging solutions. During its Q4 2024 earnings conference, the company highlighted its discussions with major clients across the mobile, high-performance computing (HPC), and automotive sectors.

Despite ongoing yield challenges with its 3nm process, Samsung’s focus on improving its 2nm technology signals its determination to remain a key player in the semiconductor manufacturing race.