samsung challenges tsmc in 2nm chip race, production to begin soon

2025-06-16 general

Seoul, Monday, 16 June 2025.
samsung electronics is gearing up to start mass production of 2nm mobile chips. this move sets the stage for intense competition with tsmc in the next-generation semiconductor market. tsmc is expected to have full utilization of its 2nm production by the fourth quarter of 2025. samsung aims to release its exynos 2600 chip for the galaxy s26 series in early 2026. the battle for market share and technological dominance is on.

The intensifying competition between samsung and tsmc in 2nm chip technology has significant implications for investors, primarily concerning market share. tsmc currently dominates the foundry market with a 67.6% share in the first quarter of 2025, while samsung lags behind with only 7.7% [1]. samsung’s push into 2nm production aims to close this gap, but tsmc’s established customer base, including major players like apple, nvidia, amd, qualcomm and mediatek, presents a formidable challenge [1][7]. The outcome of this competition will directly impact the stock performance of both companies.

technological advancements and performance

tsmc’s 2nm chips will employ gate-all-around (gaa) transistor architecture, promising a 10% to 15% performance increase, a 25% to 30% reduction in power consumption, and a 15% increase in transistor density compared to its 3nm process [1]. samsung’s exynos 2600, also using 2nm gaa technology, aims for similar improvements, reducing power consumption by 25% and increasing computing performance by 12% relative to its 3nm predecessor [5]. these advancements are crucial for attracting clients in the high-performance computing and smartphone sectors, influencing investor confidence and stock valuation.

production yield and cost considerations

production yield is a critical factor in the 2nm chip race. tsmc’s 2nm process has reportedly achieved a yield rate exceeding 60%, indicating stable mass production capabilities [7]. samsung, however, is facing challenges with its 2nm yield, which is rumored to be around 40% [1][7]. samsung aims to increase its yield rate to at least 70% for cost-effective mass production [5]. the exynos 2600 prototype chips are already in mass production, with samsung targeting a 50% yield initially, eventually climbing to 70% [3]. lower yields increase production costs and could negatively affect samsung’s profitability and stock price.

supply chain strategies and oled materials

samsung is exploring the use of chinese oled materials to reduce costs associated with 2nm chip production [2][3]. the high cost of 2nm wafers is reportedly pushing samsung to consider alternative supply chains [3]. while this strategy could lower production expenses and potentially improve the specifications of the galaxy s26 series, it also introduces risks related to intellectual property and technology sharing [2][4]. the decision to diversify its supply chain reflects the intense cost pressures in the advanced semiconductor market and could influence investor perceptions of samsung’s long-term competitiveness.

intel’s challenge and market dynamics

intel is also a key player in the advanced semiconductor arena, focusing on its 1.8nm process, branded as 18a [1]. while intel’s general manager of intel foundry services, kevin o’buckley, acknowledged past schedule setbacks, the company aims for high-volume manufacturing in the second half of 2025 [1]. the competition among tsmc, samsung, and intel underscores the rapid pace of technological advancement and the high stakes involved [1]. for investors, this dynamic environment presents both opportunities and risks, requiring careful monitoring of each company’s progress, market share, and strategic decisions.

Bronnen

chip manufacturing 2nm technology