The competition in advanced semiconductor manufacturing is intensifying as TSMC, Samsung Electronics, and Intel prepare to launch next-generation chips.

They are focusing on 2-nanometer (2nm) and 1.8-nanometer (1.8nm) processes, with production timelines set for the latter half of 2025.

TSMC, which controls 67.6% of the foundry market, has begun taking 2nm chip orders and will produce them in Baoshan and Kaohsiung using gate-all-around (GAA) transistor technology.

Samsung, holding a 7.7% share, will mass-produce 2nm mobile chips in 2025 for the Exynos 2600, aiming to stabilize yield issues seen in its earlier 3nm process.

Intel plans to enter the market with its 1.8nm, called 18A, process by late 2025, signaling its return to advanced semiconductor manufacturing.

Demand for 2nm chips is projected to rise, with TSMC expecting full capacity use by late 2025 and key customers like Apple, Qualcomm, and AMD.

Samsung is also working to attract top-tier clients and has appointed former TSMC executive Margaret Han to enhance its US foundry operations.

🔗 Source: The Korea Herald

🧠 Food for thought

1️⃣ Yield rates: The critical battlefield beyond nanometers

Behind the competition for smaller nodes lies the more fundamental challenge of manufacturing yield, a persistent hurdle throughout semiconductor history that separates announcements from profitable production.

TSMC’s reported 60% yield rate for 2nm chips represents a critical threshold for viable mass production, while Samsung’s 40% rate explains why they face greater challenges despite being first to adopt GAA architecture with their 3nm process 1.

Yield directly impacts production economics, with rates below 90% typically causing serious concern among manufacturers as each percentage point improvement can represent millions in additional revenue 1.

This pattern of yield struggles has repeated across generations. Samsung’s earlier 3nm GAA implementation faced similar challenges, demonstrating how technical leadership doesn’t always translate to manufacturing superiority.

The importance of yield rates explains why Intel’s ambitious 1.8nm timeline warrants skepticism despite their technical capabilities, as new architectures typically require extensive optimization before reaching profitable production levels.

2️⃣ Market dynamics show unprecedented demand for advanced nodes