The global semiconductor industry is witnessing a fierce rivalry as Samsung Electronics and TSMC (Taiwan Semiconductor Manufacturing Company) race to mass produce next-generation 2-nanometer (2nm) chips. This contest is not just about technological leadership—it’s a battle for market share, customer trust, and the future of the foundry business, especially as Samsung seeks to reverse a recent decline in its semiconductor division^1^3.
The 2nm Process: Why It Matters
The 2nm node represents the cutting edge of chip manufacturing, promising significant improvements in performance and power efficiency over current 3nm technology. Both TSMC and Samsung are leveraging gate-all-around (GAA) transistor technology, which reduces current leakage and enables higher transistor density^1. For customers—ranging from smartphone giants to AI chip startups—this means faster, more energy-efficient chips powering the next wave of devices and data centers^1^4.
TSMC’s Lead and Customer Base
TSMC remains the dominant player, with stable 2nm yields reportedly between 60% and 70% and a robust pipeline of orders from industry leaders such as Apple, Nvidia, AMD, and Qualcomm. Apple is expected to be the first to use TSMC’s 2nm process for its upcoming iPhone 18 series, while AMD, Intel, and AWS are also lining up for TSMC’s advanced manufacturing capacity^2^6. TSMC’s early adoption of GAA at this scale and its massive production capacity in Taiwan and the U.S. further solidify its leadership^1^4.
Samsung’s Strategy: Intercepting TSMC’s Customers
Samsung, after facing setbacks with its 3nm node and losing ground to TSMC, is aggressively pursuing a comeback with its own 2nm process. The company is leveraging its early experience with GAA technology, which it first implemented in mass production at the 3nm node, to stabilize and improve yields at 2nm^2^7. Samsung has already secured orders from Japanese AI startup Preferred Networks and is reportedly in advanced evaluation stages with Nvidia and Qualcomm^2^7. By offering competitive pricing, improved yields, and alternative geographic manufacturing, Samsung hopes to attract customers wary of overreliance on TSMC, especially amid rising geopolitical risks in the Taiwan Strait^9.
The Stakes: Reversing Decline in Samsung’s Semiconductor Business
Samsung’s semiconductor division has faced a challenging period, with profits down 21% in Q1 2025 due to weakening AI chip sales and ongoing losses in contract chip manufacturing^10. The company’s foundry business has struggled to win major orders at advanced nodes, leading to reduced investment and a delay in the opening of its new U.S. factory^10. Winning 2nm orders is seen as critical for Samsung to restore profitability and market relevance in the foundry sector^3.
Outlook: A Fierce and Uncertain Battle
- TSMC is expected to maintain its lead in 2nm mass production, with high yields and a full roster of top-tier customers^1^5.
- Samsung is betting on its improved 2nm process, customer diversification, and strategic partnerships to “intercept” TSMC’s clients and reverse its business decline^2^7.
- Industry Impact: The outcome will shape the next generation of mobile devices, AI accelerators, and high-performance computing, with both companies pushing the limits of semiconductor technology^1^4.
As the second half of 2025 unfolds, all eyes will be on which foundry can deliver on the promise of 2nm—and which customers will make the leap^1^3.
