Introduction
Taiwan Semiconductor Manufacturing Co. (TSMC) is set to dominate the 2nm chip production market, outpacing Samsung and Intel, according to Joanne Chiao, a senior semiconductor analyst at TrendForce Corp.
Key Highlights
- TSMC to start mass production of 2nm chips in Hsinchu in H2 2025.
- March 31 ceremony to mark 2nm production expansion in Kaohsiung.
- TSMC’s 2nm process expected to surpass 3nm in demand as more clients show interest.
- Samsung struggles with low yield rates and a limited customer base for 2nm chips.
- Intel lags behind in production methods but seeks to boost its foundry business through a partnership with UMC.
- TSMC held a 67.1% market share in Q4 2024, leaving Samsung (8.1%) far behind.
TSMC’s Competitive Edge in 2nm Technology
- Early adoption of advanced 2nm process
- TSMC’s 2nm process will feature the Nanosheet structure, offering higher speed & power efficiency.
- Mass production set for late 2025 in Hsinchu, with expansion in Kaohsiung.
- Dominance in AI chip manufacturing
- TSMC has already secured nearly all AI chip production orders using 3nm technology.
- 2nm process is expected to attract even more clients due to higher efficiency & flexibility.
- Yield rate advantage over Samsung
- Samsung’s yield rates for 2nm chips are less than half of TSMC’s.
- The South Korean giant is focusing on improving production efficiency & customer services.
- Intel’s struggle & partnership with UMC
- Fewer production methods & flexibility make Intel less competitive.
- The Intel-UMC partnership could strengthen Intel’s pure-play foundry business.
- Unmatched global market share
- TSMC led the foundry market in Q4 2024 with 67.1%, growing from 64.7% in Q3 2024.
- Samsung’s market share dropped to 8.1%, further widening the gap.
Expert Insights
- Joanne Chiao (TrendForce):
- TSMC’s scale & technological edge will allow it to dominate the 2nm market.
- Samsung faces challenges due to limited customers & lower yields.
- Intel needs strategic partnerships like the one with UMC to stay competitive.
FAQs
Why is TSMC leading the 2nm chip market?
TSMC has advanced technology, a high production scale, and strong yield rates, making it the top choice for 2nm chip production.
How does Samsung compare to TSMC in 2nm technology?
Samsung faces low yield rates and lacks a strong customer base for 2nm chips, relying mainly on its internal System LSI division.
What challenges does Intel face in the 2nm race?
Intel has limited production flexibility and fewer manufacturing techniques, making it harder to compete with TSMC’s efficiency.
What is the significance of TSMC’s 2nm production expansion?
The March 31 ceremony in Kaohsiung highlights TSMC’s commitment to strengthening its 2nm chip production and maintaining market leadership.
How does TSMC’s market share compare to Samsung’s?
As of Q4 2024, TSMC held a 67.1% global market share, while Samsung’s share dropped to 8.1%, widening the gap between the two.
