Samsung Bets Big on ASML Tech to Challenge TSMC in 2nm Chip Race

Samsung Electronics is making a massive strategic investment to close the gap with its rivals. The tech giant is spending $773 million on two advanced chipmaking machines from ASML. This move directly targets the booming market for next-generation 2-nanometer semiconductors.

According to Reuters, this purchase underscores the intense global competition in the foundry sector. Samsung aims to secure a leading position in advanced process technology. The new equipment is critical for mass-producing more powerful and efficient chips.

High-NA EUV Machines Are a Game Changer

Samsung is acquiring two of ASML’s most advanced extreme ultraviolet (EUV) lithography systems. These machines are essential for creating the incredibly tiny circuits on advanced chips. The first machine, a Twinscan EXE:5200B, is scheduled for delivery later this year.

The second high-NA EUV tool will arrive in the first half of 2025. Samsung has already been preparing for this technological leap. The company received a research-use version of this equipment earlier for testing and development.

This investment represents a significant shift in Samsung’s foundry strategy. After facing challenges with its 3nm process node, the company is now aggressively pursuing 2nm production. Company leadership has made this a top priority for future growth.

Samsung’s Broader Ambitions in the Chip Market

This strategic purchase is not just about catching up. It is about capturing major new contracts in high-growth areas. The advanced 2nm production capacity is crucial for manufacturing future products like the Exynos 2600 chipset.

More importantly, it positions Samsung to fulfill a massive $16.5 billion agreement with Tesla. The deal involves producing next-generation AI chips for the electric vehicle maker. Winning such contracts is vital to challenging TSMC’s market dominance.

The global semiconductor landscape is fiercely competitive. Nations and companies are investing heavily to secure their supply chains. Samsung’s latest move shows it is fully committed to being a leader, not a follower, in the years to come.

Samsung’s massive investment in ASML technology signals a new chapter in the chipmaking wars. The company is pulling out all the stops to win the 2nm production race. This battle will ultimately define the next generation of electronics.

Dropping this nugget your way

What is a high-NA EUV machine?

It is the most advanced lithography machine for printing tiny circuits onto silicon wafers. A higher numerical aperture (NA) allows for creating smaller and more complex chip features. This technology is essential for manufacturing 2nm chips.

Why is Samsung focusing on 2nm technology?

The company faced technical and yield challenges with its 3nm manufacturing process. Success at the 2nm node is critical to winning major contracts from top tech firms. It is a strategic pivot to regain competitive momentum against TSMC.

Who is ASML?

ASML is a Dutch company that is the world’s sole supplier of extreme ultraviolet lithography machines. Its technology is indispensable for producing the most advanced semiconductors. Every major chipmaker, including Intel and TSMC, relies on its equipment.

How will this investment impact the chip industry?

It intensifies the competition for advanced chip manufacturing contracts. More capacity at the 2nm node could lead to better pricing and availability for tech companies. This ultimately accelerates the development of faster, more efficient consumer electronics and AI hardware.

What was the reported Tesla deal with Samsung?

Tesla reportedly placed a $16.5 billion order for AI chips to be made on Samsung’s 2nm process. This would be a landmark deal for Samsung’s foundry business. It demonstrates the real-world demand driving these huge equipment investments.

Trusted Sources

Reuters