Race for advanced 2nm semiconductor chips heats up in H2 2025 as TSMC, Samsung, Intel gear up for production

India Gazette

19 hours ago

New Delhi [India], June 16 (ANI): The global race to lead in next-generation 2-nanometer (nm) semiconductors is expected to intensify in the second half of 2025, with top foundries TSMC and Samsung Electronics preparing to begin mass production.
At the same time, Intel is also looking to outpace its rivals with the launch of its more advanced 1.8nm process technology.
According to a report by The Korea Herald, Taiwan's TSMC has already started receiving client orders for its 2nm process node. The chips are expected to be produced at its Baoshan and Kaohsiung factories in Taiwan in the latter half of the year.
This marks a major milestone for TSMC, as it is adopting gate-all-around (GAA) transistor architecture for the first time in its 2nm chips.
The new node promises 10-15 per cent better performance, 25-30 per cent lower power consumption, and a 15 per cent boost in transistor density compared to the current 3nm technology.
Meanwhile, Samsung Electronics, the second-largest foundry player, is also targeting mass production of 2nm chips in the second half of 2025.
The company confirmed in its latest earnings report that it will begin producing mobile chips using its 2nm node this year. Although it didn't mention the specific product, it is widely believed to be the Exynos 2600 chip, expected to power the upcoming Galaxy S26 series in early 2026.
Samsung was the first to adopt GAA technology with its 3nm chips, but initially struggled with low yield rates. The company now aims to improve its 2nm production efficiency using its earlier experience.
As per The Korea Herald, TSMC currently dominates the global foundry market, holding a 67.6 per cent share in Q1 2025. It added that TSMC's 2nm yield rate has surpassed 60 per cent, a key level for stable mass production.
In comparison, Samsung's yield rate reportedly stands at around 40 per cent, with a market share of 7.7 per cent.
Despite the tough competition, the 2nm market outlook remains strong.
TSMC Chairman C.C. Wei said that demand for 2nm chips has already surpassed that of the 3nm generation, driven by demand from smartphones and high-performance computing.
He also noted that the number of 2nm chip designs, or 'tape-outs,' in the first two years is expected to exceed those of previous nodes like 3nm, 4nm, and 5nm.
Counterpoint Research has predicted that TSMC will reach full utilization of its 2nm production capacity by the fourth quarter of 2025, faster than for any previous node. Key clients are expected to include Apple, Qualcomm, MediaTek, AMD, and even Intel.
To stay competitive, Samsung is making strategic moves to strengthen its foundry business. The company recently hired Margaret Han, a former TSMC executive, to lead its US foundry operations.
Meanwhile, US chipmaker Intel is placing its bets on the 1.8nm process, known as 18A, to turn around its foundry business.
Kevin O'Buckley, general manager of Intel Foundry Services, admitted that the company had missed some of its earlier deadlines but confirmed that 18A is now on track for high-volume manufacturing in the second half of 2025.
He stated, 'I'll be very direct to admit we did not deliver all of our schedules for 18A.'
Intel hopes to challenge both TSMC and Samsung in the advanced node race with this new process. (ANI)