Optimization of Arm SoC IP in GAA Process
Expected Reduction in Product Development Time and Cost
Samsung Electronics Anticipates Demand for Generative AI
Foundry Industry's Leading-Edge Competition Heats Up
Samsung Electronics has partnered with global semiconductor intellectual property (IP) company Arm to expand the adoption of gate-all-around (GAA) process technology, a core competitiveness factor in foundry (semiconductor contract manufacturing) below 3nm (1nm = one billionth of a meter). To catch up with Taiwan's TSMC, Samsung plans to optimize Arm's next-generation IP for the GAA process, which is the most powerful weapon for expanding the GAA ecosystem. The competition for the most advanced foundry process is expected to intensify further.
Supporting Arm IP Based on GAA in the Era of Generative AI
Samsung Electronics' Foundry Business announced on the 21st that it will optimize Arm's next-generation system-on-chip (SoC) IP for the cutting-edge GAA process. Arm provides IP, a kind of basic blueprint necessary for fabless (semiconductor design-specialized) companies to design semiconductor chips. Arm holds significant market influence, as most mobile application processor (AP) products, known as the "brains" of smartphones, are based on Arm IP.
Samsung Electronics and Arm will support fabless companies in utilizing Arm's next-generation Cortex-X central processing unit (CPU) IP designed on the GAA process during the development of SoC products suitable for the generative artificial intelligence (AI) era. This will enhance fabless companies' access to the cutting-edge GAA process while minimizing the time and cost required for next-generation product development. In this process, they have decided to adopt a method that simultaneously handles design and manufacturing optimization from the early stages of collaboration to achieve excellent PPA (power consumption, performance, and area).
Samsung Electronics expects this collaboration with Arm to strengthen competitiveness in advanced GAA-based processes and ultimately help narrow the foundry gap with Taiwan's TSMC. Samsung was the first in the foundry industry to introduce the next-generation transistor structure, GAA, when it began mass production of the 3nm process in June 2022. TSMC's 3nm mass production uses the existing FinFET transistor structure. TSMC has announced plans to introduce GAA starting with 2nm mass production in 2025.
As the proportion of advanced processes in the overall foundry market rapidly increases, the food chain is expected to expand as technological competitiveness improves. Market research firm Omdia forecasts that revenue from advanced processes below 3nm will grow from $7.39 billion last year to $33.07 billion by 2026. The compound annual growth rate during this period is expected to reach 64.8%. Compared to the overall foundry market revenue growth forecast of 13.8%, this growth rate is remarkable.
As Samsung Electronics strengthens its foundry competitiveness below 3nm, competition in cutting-edge processes is expected to intensify. Intel, which declared its re-entry into the foundry business in 2021, will hold 'Direct Connect' on the 21st (local time) to introduce its business strategy, including process technology roadmaps. The semiconductor industry is paying close attention to what detailed plans Intel will share on this day. Previously, in September last year, Intel surprised the industry by unveiling a wafer prototype of its 18A (1.8nm-class) process at its event.
Samsung Electronics Expands GAA Ecosystem... Enhances Advanced Process Competitiveness
Samsung Electronics has enhanced its foundry business competitiveness through over 10 years of collaboration with Arm. In July 2018, Samsung expanded technical cooperation with Arm for the 7nm and 5nm processes to strengthen advanced process competitiveness. Since IP support is essential to expand fabless customer orders, Samsung is focusing on increasing cooperation not only with Arm but also with global IP companies such as Cadence.
Samsung Electronics plans to expand cooperation with Arm in various areas going forward. This includes the 2nm GAA process tailored for next-generation data centers and infrastructure, as well as sequentially launching AI chiplet solutions targeting the future generative AI mobile computing market. Gye Jong-wook, Vice President of the Design Platform Development Office at Samsung Electronics' Foundry Business, stated, "Through expanded collaboration with Arm, we will support innovation suitable for the generative AI era for customers of both companies."
Chris Bergman, Senior Vice President and General Manager of Arm's Client Business, also said, "We will redefine the future of mobile computing by implementing processor optimization with Samsung Foundry's GAA process," adding, "We will continue to innovate to provide the performance and efficiency required in the AI era."
According to market research firm TrendForce, as of the third quarter of last year, TSMC and Samsung Electronics held 57.9% and 12.4% shares of the global foundry market, ranking first and second, respectively. Samsung is currently mass-producing the first generation of 3nm (SF3E) process based on GAA and developing the second generation 3nm process (SF3). It plans to introduce 2nm in 2025 and 1.4nm in 2027. Samsung has also set a goal to increase the revenue share of product lines other than mobile in its foundry business by more than 50% by 2027.
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