May-30-2025 — Despite making progress at older manufacturing nodes like 7nm and 8nm—with Nintendo reportedly among its clients—Samsung continues to face serious issues at the leading edge. Three years into mass production, its 3nm yield remains stuck around 50%, according to South Korean news outlet Chosun Biz.
This persistent challenge is pushing major clients away. Google is said to have abandoned Samsung in favor of TSMC for its upcoming Tensor G5 chip. As reported by 9to5Google, the deal locks in TSMC as Google’s production partner for at least the next three to five years, covering Pixels through the Pixel 14.
Google’s departure is not an isolated case. Chosun Biz also reports that Qualcomm and AMD are relying on TSMC for their 3nm chips, lured by the Taiwanese giant’s consistently high yield rates, reportedly above 90%. Apple, NVIDIA, and MediaTek are also expected to use TSMC’s advanced N3P process, with plans to shift to its 2nm technology starting in 2026.
Samsung, meanwhile, is keeping its 3nm business mostly internal. The upcoming Galaxy Z Flip 7, launching in July, will reportedly feature the Exynos 2500—built by Samsung’s System LSI division on its in-house 3nm node, according to JoongAng Ilbo. However, this is being interpreted less as a vote of confidence in Samsung’s 3nm and more as a cost-saving measure. With its flagship Galaxy S25 series using Qualcomm chips, Samsung’s chip procurement costs rose 37% in Q1 2025, prompting the company to lean on its own designs to cut expenses.
Adding further pressure, China’s SMIC is closing the gap in the 5nm and 7nm markets. NotebookCheck reports that Huawei’s new MateBook Pro features the Kirin X90 chip, potentially built on SMIC’s cutting-edge N+3 5nm process—signaling growing competition in spaces where Samsung once had more room to lead.
