Samsung Aims to Challenge TSMC with Major 2nm Chip Production Ramp-Up

Samsung Foundry is aggressively expanding its production of advanced 2-nanometer semiconductors. This move directly challenges the market dominance of TSMC. The company plans a significant output increase starting next year.

According to a Counterpoint Research report, this expansion includes high-profile clients like Qualcomm and Tesla. The strategy aims to close the longstanding technology and market share gap with its primary rival.

Qualcomm and Tesla Lead Samsung’s 2nm Client List

Samsung’s 2nm production pipeline is rapidly filling. The company will first ship its own Exynos 2600 processor in late 2025 for the Galaxy S26 series. Shortly after, it will produce a Snapdragon 8s Elite Gen 5 chip for Qualcomm in early 2026.

This chip is expected to debut in the Galaxy Z Flip 8. The foundry has also secured contracts for specialized cryptocurrency mining chips from MicroBT and Canaan. A deal to supply Tesla with a 2nm AI chip for its Full Self-Driving technology is slated for late 2026.

Aggressive Pricing and Output Goals Signal Strong Push

Samsung is pulling all levers to compete effectively. The company has reportedly slashed its 2nm wafer prices by 33% to attract customers from TSMC. Its production capacity is projected to surge from 8,000 wafers per month to 21,000 by the end of 2026.

This combination of competitive pricing and rapidly scaling output marks Samsung’s most serious attempt in years to gain ground. If yield rates improve steadily, this strategy could meaningfully alter the foundry landscape.

Samsung’s ambitious 2nm chip production plan represents a pivotal moment for the global semiconductor industry. Its success could finally redefine the competitive balance with TSMC and reshape the supply chain for next-generation technology.

Thought you’d like to know

What is Samsung’s 2nm chip?

It is the next generation of semiconductor manufacturing technology. It allows for more transistors on a single chip, boosting performance and energy efficiency for devices like smartphones and AI systems.

When will Samsung 2nm chips be available?

The first commercial products are expected in the second half of 2025. Mass production for major clients like Qualcomm is scheduled to ramp up significantly throughout 2026.

Who are Samsung’s main 2nm customers?

Key clients include Qualcomm for smartphone processors, Tesla for AI chips, and companies like MicroBT and Canaan for specialized cryptocurrency mining hardware.

How does Samsung’s 2nm process compare to TSMC?

TSMC currently leads in advanced chip manufacturing. Samsung is aggressively competing by scaling production quickly and offering competitive pricing to narrow this technology gap.

Why is 2nm chip production important?

It is critical for powering future advancements in artificial intelligence, autonomous vehicles, and mobile computing. Control of this technology signifies major influence in the global tech industry.