Samsung’s semiconductor division had a rough ride in 2024, resulting in several setbacks. The downturn took a toll on the company’s stock, which hit a four-year low. Production of the 3nm chip saw a disappointing 20% yield rate, meaning only 1 in every 5 chips cut quality standards. Despite these challenges, Samsung hasn’t lost sight of its long-term goals, and even AI godfather Jensen Huang is backing the company. Now, Samsung is gearing up to manufacture 2nm chips at its Taylor, Texas plant, aiming to go head-to-head with TSMC.
Samsung will commence 2nm chip manufacturing in Texas to compete with TSMC
According to a report from the Korean outlet Maekyung, Samsung Foundry is set to begin advanced semiconductor chip manufacturing at its Taylor, Texas plant in 2026. As part of this move, Samsung has secured $4.74 billion in incentives through the U.S. government’s CHIPS Act. The company plans to ramp up mass production of advanced chips to compete with semiconductor giant TSMC.
The rivalry between TSMC and Samsung Foundry is nothing new. The two have been going head-to-head for years, and it seems like that competition will only intensify moving forward. There’s just one condition: neither company can afford to lose focus. TSMC, for example, has already begun producing 4nm chips at its Arizona plant and plans to manufacture 2nm and 3nm chips in the U.S. by the end of the year.
According to the report, Samsung Foundry is going all-in on Gate-All-Around (GAA) technology for its 2nm and 3nm chips, while TSMC stays ahead of the curve, using EUV for its 3nm process and GAA for 2nm. Playing catch-up, Samsung is betting on its turnkey service to shave 20% off development-to-production timelines for fabless companies.
It’ll be interesting to see how things unfold in the coming years and whether Samsung will ultimately rise to the top of the semiconductor world by the end of the decade, as it hopes.
