Samsung Cuts 2nm Chip Price to $20K

According to DigiTimes, Samsung has aggressively lowered the foundry price for its 2nm (SF2) wafers to $20,000 per chip, a third cheaper than the rumored $30,000 for TSMC's 2nm (N2) wafers. This bold move is likely aimed at securing more clients, as relying solely on demand from Samsung's next-generation flagship Exynos processors would not be enough to achieve optimal utilization at its 2nm fabs. Underutilized capacity could otherwise result in significant losses.

Early reports indicate that Samsung's first-generation 2nm yields were below 30%, but the company is actively working to improve this, targeting a 70% yield by the end of the year. In early September, ETNews reported that Samsung's foundry unit is preparing to mass-produce the next-gen Exynos 2600 mobile processor using its 2nm process, signaling progress in resolving yield issues.

Adding momentum, Tesla reportedly signed a massive semiconductor deal with Samsung last month worth 165 billion USD. This partnership focuses on producing Tesla's high-performance "AI6" system chips, planned to be manufactured at Samsung's U.S. fab using the second-generation 2nm process (SF2P) by 2026. These chips are expected to power Tesla's next-gen Full Self-Driving (FSD) systems, robotics, and data center applications, potentially further boosting SF2P yields.

However, aside from the Exynos 2600, Samsung's first-generation 2nm process has yet to attract other major clients. In comparison, TSMC's 2nm process is not yet in production but reportedly priced at $30,000 per wafer, and it has already secured key clients such as Apple, AMD, Qualcomm, MediaTek, along with potential adoption from Broadcom and select ASIC players like Google and Amazon. Ahmad Khan, president of KLA's semiconductor products and solutions division, recently noted at a Goldman Sachs event that TSMC's 2nm has already signed 15 clients, 10 focused on HPC applications and the remainder likely mobile chipmakers.

With performance and yields still lagging behind TSMC, Samsung's only viable strategy to attract new clients appears to be aggressive pricing. At $20,000 per wafer, Samsung's 2nm offers a compelling alternative for customers unable or unwilling to pay TSMC's premium, particularly given TSMC's fabs are running at full capacity.