Samsung Semiconductor is racing against the clock to mass-produce advanced 2nm semiconductors by 2025 in order to catch up with Taiwan Semiconductor Manufacturing Company (TSMC). With TSMC controlling more than 62 per cent of the worldwide semiconductor foundry industry versus Samsung's 11 per cent, success in this next-generation chip technology is critical to Samsung's future competitiveness and profitability.
Despite significant expenditures in fine technology, Samsung has struggled to match TSMC's dominance in the semiconductor business. TSMC's dominating 62.3 per cent market share dwarfs Samsung's 11 per cent, putting enormous pressure on the South Korean powerhouse to break through with its 2nm and 1.4nm process technologies. Samsung is substantially investing in new manufacturing lines at its Hwaseong and Pyeongtaek facilities, with the goal of starting mass production of 2nm chips in 2025 and scaling up to 1.4nm by 2027.
The company's strategy is based on acquiring significant clients for its advanced semiconductors, with Samsung actively recruiting Qualcomm as a key partner for its 2nm technology. Should Qualcomm use Samsung's technology in its next-generation Snapdragon processors, it may significantly enhance Samsung's foundry business, gaining new clients and expanding its market share.
However, Samsung faces significant obstacles. The company has already experienced difficulties, including delays in the production of its 3nm Exynos CPUs. Sources also indicate that Qualcomm's Snapdragon 8 Gen 4 will power Samsung's flagship Galaxy S25 series around the world, implying that Samsung may still have reservations about its Exynos CPUs. Meanwhile, Samsung's Exynos 2500 processor is slated to make its debut in the Galaxy Z Fold 7 and Flip 7, which will be released in late 2024.
