samsung aims to leapfrog tsmc with us 2nm chip production

2025-06-25 general

Washington, Wednesday, 25 June 2025.
samsung electronics is planning to produce 2nm chips in the united states. this move could put samsung ahead of tsmc in advanced chip manufacturing. spurred by funding from the biden administration’s chips act, samsung is increasing its investment in us production. the company intends to draw attention away from tsmc’s arizona factory. samsung’s taylor, texas facility will be central to these efforts. it aims to begin mass production as early as the first quarter of next year.

production timeline and challenges

Samsung’s taylor plant aims to install manufacturing equipment by january or february 2026 [5]. the company has resumed cleanroom work at the plant, a crucial step for controlling contamination during chip production [5]. initial plans to produce 4nm chips at the taylor facility have shifted to the more advanced 2nm process [1][5]. samsung’s 2nm process, known as sf2, is projected to deliver a 12% performance increase and a 25% improvement in power efficiency compared to its 3nm sf3 chips [1][4][5]. however, samsung has faced challenges in securing major global tech clients for its 2nm process [5].

market competition and strategic shifts

samsung’s aggressive push towards 2nm production reflects the intense competition with tsmc and intel [3]. samsung is reportedly adjusting its business strategy to focus on enhancing yields for its 2nm and 4nm nodes [4]. the company has delayed its 1.4nm production, with mass production unlikely before 2028 or 2029 [3][4]. this strategic shift underscores samsung’s commitment to improving the reliability and efficiency of its existing advanced processes [4]. tsmc is expanding its 3nm process technology, which is expected to remain a preferred choice among major clients [6].

potential customers and yield targets

samsung has secured deals with several ai chip design firms from south korea and japan [5]. there is speculation that samsung has also secured a deal with tesla to manufacture dojo ai chips using its 2nm process [5]. samsung’s exynos 2600 chip, expected to power the galaxy s26 series, has entered prototype mass production, targeting yields above 50% [2][4]. samsung foundry aims to achieve a 60% yield for its 2nm process by the end of 2025 [7]. success in achieving these yield targets is critical for attracting further investment and securing additional high-profile clients [7].

implications for investors

samsung’s move to prioritize 2nm chip production in the us could positively influence investor sentiment [1]. the ability to mass-produce advanced chips in the us could provide a competitive edge and potentially increase samsung’s market share [1]. however, investors should closely monitor samsung’s ability to achieve high yields and secure major clients [1]. the success of the taylor plant and the sf2 process will be crucial indicators of samsung’s long-term competitiveness in the foundry market [5]. samsung’s 8nm process remains a cost-effective option, demonstrating its ability to maintain a diverse portfolio [8].

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