Samsung Electronics is ramping up its 2-nanometer chip production, a strategic move to close the gap with industry leader TSMC. Market research indicates Samsung's 2-nanometer production capacity is projected to surge by 163% by the end of 2025, following improvements in its production yields. This intensification of competition comes as TSMC is reportedly increasing its 2-nanometer wafer prices by 50% due to high demand from major clients like NVIDIA and Apple, potentially creating an opening for Samsung to attract customers with more flexible pricing. This development is significant for TSMC as it signals a more aggressive push from its primary competitor in the foundry market. While TSMC currently holds a dominant market share, Samsung's advancements in 2-nanometer technology, including the use of gate-all-around (GAA) technology, position it as a credible challenger. Industry observers anticipate that Samsung's foundry business could reach profitability by 2027, partly driven by new production at its Taylor, Texas facility. This heightened competition could influence future technology roadmaps and investment decisions for both semiconductor giants.
Samsung Accelerates 2nm Chip Production, Increasing Competitive Pressure on TSMC
TSM
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