NVIDIA Rumored to Transition to Samsung Foundry for Cost-Effective 2nm Process, Moving Away from TSMC

NVIDIA’s Potential Shift from TSMC to Samsung Foundry for 2nm Process

Recent rumors suggest that NVIDIA is contemplating a shift away from TSMC’s much-discussed 2nm manufacturing process, choosing instead to engage with Samsung Foundry. This decision is primarily driven by concerns over the escalating costs tied to TSMC’s production capabilities and the company’s increasing influence in the market.

According to a report from Ctee, as sourced from South Korean media outlets, industry giants like NVIDIA are exploring options to migrate their 2nm orders from TSMC, citing prohibitive costs as a significant barrier to adoption. TSMC, which currently remains the sole “credible”supplier in the 2nm arena, has leveraged this position to impose tighter control over pricing, creating a challenging environment for potential clients.

Understanding the Current Landscape

It is crucial to approach these developments with caution, considering the landscape surrounding 2nm technology. Currently, TSMC leads the market alongside Samsung and Japan’s Rapidus, though the latter two are reportedly lagging behind TSMC in terms of yield efficiency. As discussions continue between NVIDIA and Samsung, the outcomes remain uncertain.

NVIDIA’s Considerations and Industry Trends

While NVIDIA is reportedly eyeing Samsung Foundry for 2nm production, the company is proceeding with caution due to Samsung’s historical performance issues with other clients, such as Qualcomm. Notably, Qualcomm is also strategizing a “dual-source”approach for its future 2nm supply chain, which involves utilizing both TSMC and Samsung. This signals a potential shift in the competitive landscape, indicating that the next wave of advanced manufacturing could involve multiple players rather than a TSMC monopoly.

The Road Ahead for 2nm Adoption

The timeline for widespread adoption of 2nm technology appears to be slowing. Companies such as Apple have postponed their plans to 2026, while NVIDIA and Qualcomm continue to evaluate their alternatives. This complicated scenario implies that the integration of 2nm chips into consumer products will take longer than initially anticipated. Moreover, as Samsung’s current 2nm offerings have not yet garnered favorable market reception, there is a strong likelihood that many firms may ultimately return to TSMC as their primary supplier.

As these trends unfold, industry stakeholders will be closely monitoring how this shift could reshape the semiconductor landscape in the coming years.

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