tsmc's bold move in chip race: 2nm shipments set for 2025
Hsinchu, Tuesday, 7 January 2025.
tsmc is poised to ship its 2nm chips in 2025, a strategic move to secure its position in the semiconductor market. This development comes amidst fierce competition, as companies like Samsung and Rapidus are also advancing their own 2nm technologies. tsmc’s announcement is crucial, especially considering the high production costs and current yield issues associated with these advanced chips. Apple’s decision to delay using tsmc’s 2nm chips due to these factors highlights the challenges and opportunities in the market. The upcoming years will see intense competition with significant implications for market dynamics. tsmc’s success in ramping up production could redefine its dominance, while competitors aim to capitalize on any missteps. Investors and industry players will be watching closely as the battle for semiconductor supremacy unfolds.
Production challenges and market dynamics
TSMC’s 2nm chip production faces significant hurdles with current yield rates at only 60% [1][2]. The high production costs, reaching $30,000 per silicon wafer [2][4], have led major clients to reconsider their adoption timeline. Apple, TSMC’s largest customer, has postponed implementing 2nm chips in their iPhone 17 series, pushing the integration to the iPhone 18 in 2026 [2][4].
Competitive landscape shifts
Samsung Electronics is emerging as a serious challenger, planning to begin trial production of 2nm chips in Q1 2025 [2][4]. Japan’s Rapidus is also entering the race, constructing a facility in Hokkaido with aims to achieve mass production by 2027 [2]. TSMC plans to ramp up monthly production from 10,000 wafers during trial production to 80,000 wafers by 2026 [4].
Market diversification strategy
Major tech companies are actively pursuing supply chain diversification to reduce dependency on a single manufacturer [4]. NVIDIA and Qualcomm are reportedly considering shifting some advanced chip orders to Samsung’s 2nm process [2][4]. This strategic move reflects industry concerns about TSMC’s potential monopoly pricing power, despite current technical advantages [4].