TSMC’s Foundry Market Share Projected to Hit 75% by 2026, Report Indicates 2nm Wafer Prices Will Be Slightly Reduced

Samsung is making strides in the semiconductor industry by initiating prototype mass production of its Exynos 2600 using the advanced 2nm process technology. However, TSMC (Taiwan Semiconductor Manufacturing Company) continues to solidify its dominant position in the market, thanks to its longstanding reputation for reliability and excellence in fulfilling orders for high-profile clients, including tech giant Apple. A recent report indicates that TSMC is poised to capture an impressive 75 percent of the foundry market by 2026, thanks to its industry-leading lithographic capabilities.

Projected Surge in 2nm Wafer Orders to Propel TSMC’s Market Dominance

According to an April report, TSMC has begun accepting orders for its state-of-the-art 2nm wafers, capitalizing on remarkable yield rates that have attracted numerous customers, including NVIDIA, AMD, Apple, Qualcomm, and MediaTek, among others. Insights from a report by DigiTimes, shared by industry tipster @Jukanlosreve, suggest that TSMC’s market share could grow from 70 percent in 2025 to 75 percent in 2026.

While the report does not explicitly state the exact price for TSMC’s 2nm wafers, it is suggested to approach $30, 000 per unit. If this pricing holds true, it could incentivize clients to significantly increase their order volumes. In comparison, the cost for 3nm wafers currently sits at around $20, 000. With Samsung reportedly lacking considerable interest in its 2nm Gate-All-Around (GAA) technology, prominent clients are likely to favor TSMC, enabling the company to bolster its market share to 70 percent this year.

While placing orders with TSMC appears to be a smart strategy for these corporations, transitioning to such cutting-edge manufacturing processes comes with hefty financial implications. TSMC’s upcoming 1.4nm node, termed Angstrom, is anticipated to carry an astonishing price tag of $45, 000 per wafer, making it increasingly vital for companies to strategize their sourcing to mitigate costs.

Although production of this advanced technology won’t commence until 2028, the clock is ticking rapidly towards that timeline. Consequently, Samsung’s strategy to enhance its presence in the foundry market may need to be prioritized, especially as major industry players might adopt a dual-sourcing strategy to help manage expenses effectively.

For more insights, visit the news source at DigiTimes.

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