2nm Technology Race: Samsung Discounts Challenge TSMC

In recent news as of December 12th, there have been significant advancements in the race to produce 2nm semiconductor technology. Despite TSMC and Samsung's anticipated 2nm mass production by 2025, the competition for 2nm orders has already commenced. As reported by the Financial Times, Samsung is strategically offering substantial discounts on its 2nm foundry services to secure orders from key players like Qualcomm and NVIDIA, intensifying the battle with TSMC.

Leading semiconductor manufacturers such as Qualcomm and NVIDIA traditionally rely on TSMC for their high-end chips. However, industry giants are adopting a strategy of diversifying wafer foundry services to reduce dependency on specific suppliers.

NVIDIA's CFO, Colette Kress, hinted at the UBS Global Technology Conference that the company is exploring the possibility of expanding foundry services to include Intel Foundry Services (IFS) for the production of next-generation chips. This potential move could disrupt TSMC's exclusive position in manufacturing NVIDIA's AI chips.

In recent developments, TSMC has showcased promising 2nm prototype test results to major clients, including Apple and NVIDIA. Simultaneously, Samsung is not only unveiling its 2nm prototypes but also enticing interest from prominent clients like Qualcomm and NVIDIA through discounted prices.

Reports suggest that Qualcomm is planning to leverage Samsung's SF2 (2nm) process for the production of its next-generation high-end smartphone chips. Samsung, having initiated the global mass production of its 3nm (SF3) process in June of the previous year, marked a milestone as the first company to employ Gate-All-Around (GAA) transistor architecture.

Samsung has affirmed its readiness for the mass production of SF2 in 2025, expressing confidence in a smooth transition from SF3 to SF2, given its pioneering adoption of the GAA architecture.

Insider information indicates that Samsung's current yield for 3nm chips stands at 60%, falling below customer expectations. Challenges are expected to persist, especially when producing chips with complexity comparable to Apple's A17 Pro or NVIDIA's graphics processing units (GPUs).

TSMC has reiterated that its 2nm development is progressing according to plan and is scheduled for mass production in 2025. The 2nm technology is poised to represent the industry's pinnacle in terms of density and energy efficiency.

Beyond the fierce competition between TSMC and Samsung for 2nm orders, Intel is making significant strides in the 2nm wafer foundry landscape. Intel's strategic plan involves producing five advanced process technology nodes within four years, with the imminent launch of the Intel 3 process at the end of this year. Subsequent to this, Intel 20A is slated for production in the first half of 2024, followed by Intel 18A in the second half. Both processes will incorporate the new RibbonFET transistor architecture and PowerVia technology.

As disclosed by Intel in July of this year, the Intel 18A process will be utilized to manufacture custom 5G SoCs for Ericsson, showcasing Intel's commitment to delivering highly differentiated leading products for future 5G infrastructure.