Samsung, TSMC set stage for fierce race in 2nm chip tech

Korea Herald

16 hours ago

The global race to lead the market for next-generation 2-nanometer semiconductors is set to intensify in the second half of this year, with leading foundries TSMC and Samsung Electronics preparing to begin mass production. Meanwhile, Intel is looking to leapfrog the competition with the more advanced 1.8nm process, aiming to revive its struggling foundry business.
According to industry sources Sunday, TSMC has already begun receiving client orders for its 2nm process node, which is expected to be produced at its Baoshan and Kaohsiung fabs in Taiwan in the second half of this year.
For the first time, TSMC is adopting gate-all-around transistor architecture in its 2nm chips, marking a major technological shift. The new node is expected to offer 10-15 percent better performance, 25-30 percent power reduction and a 15 percent increase in transistor density compared to the current 3nm process.
Samsung Electronics, the second-largest player in the foundry market, is also targeting the second half of 2025 for the start of its 2nm chip production.
In its latest earnings report for the January-March period, Samsung confirmed that it will start mass production of mobile chips using its 2nm process node within the year.
While the company did not specify what the product would be, it is widely expected to be the Exynos 2600, the upcoming application process chip for its flagship Galaxy S26 series, set for release in early 2026.
Samsung was the industry's first chipmaker to adopt the advanced GAA architecture for its earlier 3nm node process, but it struggled with low yield rates in the initial stages. Leveraging its prior experience with the cutting-edge architecture, the company now aims to improve its manufacturing stability and output at the 2nm level.
TSMC, which is dominating the global foundry market, securing 67.6 percent share in the first quarter this year, appears to be on track. Sources say the company has achieved yield rates above 60 percent, crossing the threshold for stable volume production.
Samsung, holding a 7.7 percent market share, is tasked with raising its yield rate, which reportedly stands at around 40 percent.
Amid the intense competition, the outlook for the 2nm node is optimistic, with demand projected to surpass that of the previous 3nm generation.
TSMC Chairman C.C. Wei said during a recent earnings call that demand for 2nm has already outpaced that for 3nm, driven by both smartphone and high-performance computing applications.
'We expect the number of new tape-outs for 2nm technology in the first two years to exceed those of 3nm and even 5nm or 4nm,' Wei said, highlighting robust interest from key customers.
Market intelligence firm Counterpoint Research echoed this projection, forecasting that TSMC will achieve full utilization of its 2nm production capacity by the fourth quarter of this year -- faster than any previous node. Major customers are expected to include Apple, Qualcomm, MediaTek, AMD, and even Intel.
Samsung's challenge will be to attract top tech clients to remain competitive in the advanced node market. For the mission, the chipmaker has recently brought on board Margaret Han, a former TSMC executive, to lead its US foundry business at Samsung Device Solutions Americas.
Meanwhile, US chip giant Intel is betting on its 1.8nm process, branded as 18A, to reassert itself in the foundry market.
At a recent Direct Connect event, Kevin O'Buckley, general manager of Intel Foundry Services, admitted the company was behind schedule.
'I'll be very direct to admit we did not deliver all of our schedules for 18A,' he said.
Still, he emphasized that 18A is now on track for high-volume manufacturing in the second half of 2025, and that Intel believes it will soon be ready to challenge TSMC and Samsung in advanced nodes.