TSMC, Samsung, Intel Compete to Mass-Produce 2nm Chips

The semiconductor industry is entering a heated competition as leading foundries prepare to commence mass production of chips using the 2nm process node in 2025. This milestone coincides with the third year of 3nm chip production. Apple's iPhone 15 Pro and iPhone 15 Pro Max are among the first smartphones to feature 3nm chips, utilizing the A17 Pro application processors (AP) built on TSMC's first-generation 3nm node (N3B).

Looking ahead, TSMC's second-generation 3nm node (N3E) will power the A18 and A18 Pro processors in the iPhone 16 series. Although rumors suggested that TSMC's 2nm process would be used for the A19 chips, the iPhone 17 series will instead adopt TSMC's third-generation 3nm process (N3P). Apple is expected to transition to the 2nm node for its A20 and A20 Pro processors with the iPhone 18 series in 2026, potentially to manage production costs. It is worth noting that the cost of wafers for a new process node is typically higher during its initial year of use.

TSMC, the world's largest contract chip manufacturer, has already secured substantial commitments for its 2nm capacity. In addition to Apple signing up for the 2026 2nm production, TSMC's client base includes high-performance computing (HPC) companies, artificial intelligence (AI) firms, and mobile chip developers, giving it a significant lead over competitors like Intel and Samsung Foundry. Notable companies such as AMD, NVIDIA, MediaTek, and Qualcomm have expressed interest in TSMC's 2nm process.

Samsung Foundry, meanwhile, has faced challenges in yield rates for its 4nm, 3nm, and 2nm nodes. Its poor 4nm yield for Qualcomm's Snapdragon 8 Gen 1 processors led Qualcomm to switch to TSMC for subsequent production, with TSMC achieving a higher yield of 70% on its 4nm process. However, Samsung's 3nm yield issues have reportedly delayed production of the Exynos 2500 AP, forcing Samsung to rely on Qualcomm's more expensive Snapdragon 8 Elite processors for its Galaxy S25 series. Lower yields drive up costs, as additional wafers are required to meet production targets.

Another competitor in the 2nm race is Rapidus, a Japanese startup funded by the Japanese government in collaboration with the United States. Using IBM's advanced 2nm technology, Rapidus plans to focus on small-scale, customized chip production instead of mass-market orders. IBM demonstrated its first 2nm chip in May 2021, utilizing cutting-edge gate-all-around (GAA) transistor architecture, which enhances power efficiency and reduces leakage currents.

Intel is also vying for leadership in advanced process nodes, with its 1.8nm Intel 18A technology expected to enter production in 2025. However, the company faces uncertainties following the resignation of former CEO Pat Gelsinger in December 2024. While Amazon AWS has committed to Intel's 18A node, the company has yet to secure widespread interest from other clients.

Given TSMC's robust customer base and technological advancements, it is widely regarded as the frontrunner in the 2nm competition, maintaining a decisive edge over rivals Samsung and Intel in the race for semiconductor dominance.