Samsung Poised to Outpace TSMC in 2nm Chip Development, But Success Relies on Overcoming Current Challenges

Recent reports indicate that Samsung may have resolved the issues it faced with its 3nm Gate-All-Around (GAA) technology as it moves forward with its new 2nm GAA node. This development suggests that the Korean semiconductor giant is regaining its competitive edge in the ongoing technological race. Early trial production runs of the Exynos 2600, manufactured using the 2nm GAA process, reportedly achieved yields of about 30 percent, setting the stage for potential large-scale wafer production. However, the feasibility of this venture still hinges on Samsung’s ability to enhance its yield rates to acceptable standards.

TSMC’s Competitive Edge with Higher Yields

While Samsung is optimistic about its progress, TSMC has reportedly achieved yields exceeding 60 percent on its 2nm technology. The Taiwanese semiconductor leader seems to be adopting a strategic waiting approach, rather than rushing to outpace Samsung at this stage. Although specific details about Samsung’s yield improvement remain unclear, the Exynos 2600 prototype is anticipated to enter full production by May of this year. This timeline provides Samsung with the necessary opportunity to gradually boost its yield levels, which must reach at least 70 percent to begin accepting external customer orders.

Looking ahead, the design for the Exynos 2600 must be finalized by the third quarter of this year for a chance to appear in the forthcoming Galaxy S26 series. While Samsung may hold a temporal advantage over TSMC in terms of launch schedules, it’s essential to remember that similar situations have occurred in the past. For instance, Samsung previously announced its initial 3nm GAA processes in 2022 but faced delays in actual production. In comparison, TSMC has consistently maintained stronger yield rates, with its 2nm trial production reported at around 60 percent, potentially higher based on expert analysis.

Notably, TF International Securities analyst Ming-Chi Kuo remarked that since the last reported figure, TSMC’s yields are likely well above 60 percent, particularly in connection with the Apple A20 SoC, slated for the iPhone 18 series set to release in the latter half of 2026. With TSMC’s progress, the company could produce up to 50, 000 wafers monthly by the end of 2025, positioning it as a formidable competitor in the semiconductor industry, even with Samsung’s advancements. Nevertheless, if Samsung can successfully enhance its 2nm GAA yield rates, it may reclaim some of the market share it has lost over the past few years.

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