Samsung’s 2nm Ambitions: Can They Overtake TSMC?

Exynos 2500

Despite facing challenges with its 3nm process, Samsung remains undeterred. According to supply chain media DigiTimes, these difficulties have seemingly fueled Samsung’s determination, prompting a more aggressive approach towards deploying 2nm chips in 2026. This strategic move aims to secure a strong comeback in the fiercely competitive semiconductor market.

3nm Yield Woes and Customer Defections:

Samsung’s 3nm process has been plagued by low yield rates, reportedly below 20%. This has led several key customers, seeking higher production efficiency, to opt for TSMC’s 3nm process, which boasts yields exceeding 80% and approaching 90%. This customer shift directly impacts Samsung’s revenue and market position, posing a significant challenge to the company’s ambitions in the foundry market.

Impact on Exynos 2500 and Galaxy S25 Series:

Further compounding the situation, Samsung has faced hurdles in the mass production of its Exynos 2500 chips. Consequently, the company has reportedly been forced to adopt Qualcomm’s Snapdragon 8 Elite processor for the Galaxy S25 series globally. This reliance on a competitor’s chip has increased production costs, leading to a price hike of up to $130 for the Galaxy S25 series.

Turning Challenges into Opportunities:

Undeterred by these setbacks, Samsung is aggressively pursuing 2nm chip development. The company is actively seeking large-scale orders from major clients like Qualcomm and Nvidia, with the goal of mass production in early 2026. This ambitious timeline, moved up from the initial plan of late 2025, underscores Samsung’s determination to showcase its technological prowess and regain market confidence.

The Stakes are High:

Samsung’s success in overcoming the 3nm yield issues and successfully mass-producing 2nm chips will be crucial for its future in the foundry market. It will not only determine the fate of Samsung’s foundry division but also significantly impact the strategic direction of its mobile phone business.

Conclusion:

Samsung’s aggressive pursuit of 2nm chip technology signals its resilience and determination to overcome current challenges. By accelerating its 2nm development and actively seeking partnerships, Samsung aims to reclaim its position as a leading player in the semiconductor industry. The coming years will be critical in determining whether this bold strategy will pay off and propel Samsung back to the forefront of chip manufacturing.

About the author

Sumit Kumar

Sumit Kumar, an alumnus of PDM Bahadurgarh, specializes in tech industry coverage and gadget reviews with 8 years of experience. His work provides in-depth, reliable tech insights and has earned him a reputation as a key tech commentator in national tech space. With a keen eye for the latest tech trends and a thorough approach to every review, Sumit provides insightful and reliable information to help readers stay informed about cutting-edge technology.

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