Aiming to close the gap with TSMC’s market dominance, Samsung is rushing to kick off mass production of 2nm chips by 2025. However, it faces production challenges and seeking Qualcomm’s partnership.
Samsung Semiconductor is reportedly working intensively to begin mass production of advanced 2nm chips by 2025 in a bid to catch up with Taiwan Semiconductor Manufacturing Company (TSMC).
According to BW Businessworld, TSMC commands over 62% of the global semiconductor foundry market, compared to Samsung’s 11%. Mastering this technological advancement is vital for Samsung’s competitive edge and profitability.
Despite pouring significant resources into cutting-edge technology, Samsung has struggled to keep pace with TSMC’s market dominance. The disparity in market share emphasises the urgent need for Samsung to successfully roll out its 2nm and 1.4nm chip technologies.
To facilitate this, the company is heavily investing in new manufacturing lines at its Hwaseong and Pyeongtaek facilities. It aims to begin mass production of 2nm chips by 2025 and 1.4nm chips by 2027.
Moreover, Samsung’s approach involves attracting significant clients for its advanced semiconductors, focusing on partnering with Qualcomm for its 2nm technology. If Qualcomm decides to integrate Samsung’s technology into its upcoming Snapdragon processors, it could strengthen Samsung’s foundry business, drawing in new customers and increasing its market share.
However, the report highlighted that Samsung has challenges. The company has already faced hurdles, such as delays in producing its 3nm Exynos CPUs. Furthermore, Qualcomm’s Snapdragon 8 Gen 4 may power Samsung’s flagship Galaxy S25 series globally, suggesting potential doubts regarding the reliability of Samsung’s own Exynos CPUs.
Meanwhile, the Exynos 2500 processor is expected to launch with the Galaxy Z Fold 7 and Flip 7, scheduled for release in late 2024.
