NVIDIA and QCOM Reportedly Considering Samsung, TSMC To Lose 2nm Orders?

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, may face challenges in retaining key 2nm orders. Industry reports suggest that tech giants NVIDIA and Qualcomm are testing Samsung Foundry's 2nm process as an alternative to TSMC.    

This strategic exploration stems from concerns about overreliance on TSMC, rising costs, and reduced bargaining power.

While TSMC remains a leader in the 2nm race, achieving a reported 60% yield rate and planning mass production by 2025, its competitors are closing in. Japan's Rapidus and South Korea's Samsung Foundry are making strides to achieve 2nm-class node mass production. Samsung is already drawing attention from existing customers like Japan's AI-focused Preferred Networks (PFN) and has begun trial runs with global tech leaders such as NVIDIA and Qualcomm.

Samsung Foundry's ability to attract major players hinges on its promise of cost competitiveness and improved performance. However, questions linger over its production reliability, especially after past struggles with 4nm and 3nm chips, which damaged customer trust due to overheating and performance issues.

Samsung and TSMC have been locked in intense competition for Qualcomm's business for years. TSMC has secured a significant share of Qualcomm's Snapdragon flagship orders since 2020, as Samsung faced setbacks with its 5nm chips. Now, Samsung's ability to recover its standing in the semiconductor industry may rest on its 2nm performance.

The Stakes for Samsung

Samsung's semiconductor division has faced billions in losses, making the success of its 2nm process pivotal.    Analysts view this as Samsung's last chance to regain customer confidence and prove its capability as a leading foundry player. With TSMC's dominance and Samsung's troubled history, the stakes have never been higher.

The coming years will reveal whether Samsung can challenge TSMC's supremacy or if the Taiwanese chipmaker will maintain its stronghold in the critical 2nm space.