Samsung to Overtake TSMC in 2nm Chip Production

Samsung Electronics will dramatically increase its market share in the global foundry with a competitive advantage in sophisticated processes by 2024, when the industry anticipates recovery to begin as per projections from the industry. Samsung Electronics may have the opportunity to gain a competitive advantage by being the first to produce next-generation chips, following the South Korean chipmaker’s achievement of becoming the world’s first producer of 3nm chips.

This is a result of Taiwan Semiconductor Manufacturing Co. (TSMC), which reportedly delayed its planned mass production of 2 nm. As per Taiwanese media and other sources, TSMC expects to finish the ongoing building of a 2nm factory in Baoshan, Taiwan, by the second quarter of 2025. It was also claimed that the Taiwanese chipmaker would begin mass production of 2nm chips with a monthly output of 30,000 wafers as early as the fourth quarter of that year. It is also said that TSMC has encountered difficulties in creating GAA (Gate-All-Around), a next-generation technology with a greater efficiency of power use than the traditional FinFET process.

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TSMC has increased its work in developing next-generation technologies so quickly that it was projected to begin production of prototype 2nm chips sooner than planned, with some predicting that the firm will begin mass production in early 2025. However, these hopes have subsequently dwindled as the Taiwanese chipmaker’s Baoshan facility building has been delayed as the business adjusts supplies to meet demand predictions. Industry analysts state that the chipmaker’s delayed strategy has made it impossible for it to deploy 2nm chips on time.

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To present, Samsung Electronics has had success adapting GAA technology to their 3nm manufacturing process, with an anticipated yield rate of more than 60%. The Korean chipmaker has also been producing second-generation 3nm devices by leveraging its technological knowledge for first-generation products. The business intends to commence manufacturing of 2nm chips in 2025 and 1.4nm chips in 2027.

A hidden source from the chip industry said,The demand for 3nm has sagged in the face of global economic slowdowns, and the markets expected a rapid jump for the industry in 2025, when a peak demand is forecast.” 

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