TSMC leaps to 2nm chip as Samsung battles 3nm hurdles

TSMC could commence mass production of cutting-edge 2nm products next year. While Samsung is facing issues with its 3nm process tech, its Taiwanese rival is set to widen the gap further.

Taiwan’s LibertyTimes reports that TSMC has decided to operate mass production of 2nm products after the test production yield of its 2nm process exceeded 60%.

Currently, the most advanced mass-production technology worldwide is 3nm. With the 2nm process yield surpassing 60%, TSMC plans to transfer it to the newly constructed Kaohsiung plant.

TSMC plans to build 10 new factories in Taiwan and overseas simultaneously next year. Details of these capital investments will be disclosed during the Q4 earnings briefing.

Samsung vs TSMC – Foundry Market

TSMC’s capital expenditure is expected to reach up to $38 billion in 2025. If this happens, the expenditure will surpass the previous record of $36.29 billion.

The company has widened its lead over second-place Samsung in the global foundry market during the third quarter, meanwhile, Samsung saw its market share fall from 11.5% to 9.3.

The gap between Samsung Foundry and TSMC expanded from 50.8% in Q2 to 55.6% in Q3.

TrendForce explained, “TSMC saw increased capacity utilization and wafer shipments driven by flagship smartphone products and AI semiconductors, whereas Samsung Electronics faced intensified competition with Chinese firms in mature process technologies, leading to price cuts and a subsequent decline in revenue and market share compared to the previous quarter.”

Nanometer

The term “nanometer” (nm) refers to the width of semiconductor circuits. The narrower the width, the lower the power consumption and the faster the processing speed.

TSMC’s 2nm factories are being built at the Nanzih Science Park in Kaohsiung and are scheduled to begin operations in the first and third quarters of next year, respectively.

Via – Jukanlosreve