Specifically, yields for Samsung's 2nm transistors are reported to be as low as 10-20%, while the 3nm process has only improved to about 20% in recent months.

The delays in production have also jeopardized Samsung's $6.4 billion agreement with the U.S. government under the CHIPS Act, which mandates operational timelines.

The newly appointed vice chairman of Samsung's semiconductor division has stressed the importance of fostering a culture that encourages reporting problems to address these ongoing issues.

With these ongoing challenges, Samsung's ambitious plans for 2nm transistors now seem increasingly unattainable.

Samsung's semiconductor foundry business is facing significant challenges, controlling only 11% of the market compared to TSMC's dominant 62.3%.

The company's mass production timeline for chips at its Taylor, Texas facility has been delayed from late 2024 to 2026 due to ongoing yield issues, particularly with its 2nm and 3nm processes.

Current yield rates for Samsung's advanced processes are troubling, with yields below 50% typically inadequate for mass production.

These yield issues stem from Samsung's early adoption of gate-all-around (GAA) technology, which has proven less effective compared to TSMC's processes.

In the competitive landscape, Qualcomm has awarded its upcoming Snapdragon 8 Gen 4 chip contract to TSMC, although Samsung is hopeful for future contracts due to better pricing.

Analysts suggest that Samsung's struggles are compounded by internal issues such as slow decision-making and excessive bureaucracy, further undermining its competitiveness.

In response to these challenges, Samsung has begun reducing personnel at its Texas plant, which is part of a broader strategy that may include cutting up to 30% of its global workforce.

Despite these setbacks, Samsung's chairman is actively seeking solutions by engaging with key equipment suppliers like ASML and Zeiss.