TSMC is expanding its leading position in the cutting-edge wafer foundry market. The company significantly increased its 3nm process sales share in the fourth quarter of last year and plans to begin mass production of its 2nm process this year.

Samsung Electronics' first-generation 2nm

Samsung Electronics is also following this trend, improving the yield of its first-generation 2nm process to around 50%. Furthermore, the company is reportedly actively preparing to secure further growth momentum, including guiding its partners in promoting its second-generation 2nm process.

On the 15th, TSMC disclosed the progress of its advanced wafer foundry process development and commercialization during its Q4 earnings call last year.

TSMC Chairman C.C. Wei stated, "The N2 (2nm) process successfully entered mass production in the second half of last year. Based on our strategy of continuously improving performance, we expect to achieve rapid mass production (full-scale production) this year."

The N2P process, the successor to the N2 process, is also planned to begin mass production in the second half of this year. Compared to N2, the N2P process offers improvements in both performance and energy efficiency. In addition, the 16A (1.6nm) process, employing proprietary Backside Power Supply Density (BSPDN) technology, will also begin mass production in the second half of this year. BSPDN places the power lines on the back of the chip, thereby improving chip performance and increasing design freedom.

TSMC's 2nm process

Industry insiders believe that TSMC's 2nm process has maintained stable yield rates since mass production. Local sources in Taiwan even claim that the yield rate exceeds 80%.

Thanks to this, TSMC is expected to maintain its leading position in the advanced wafer foundry market this year, following its success last year. As of the fourth quarter of last year, 3nm technology accounted for 28% of TSMC's total sales, a record high.

Samsung Electronics began mass production of its latest mobile application processor, the Exynos 2600, based on its first-generation 2nm (SF2) process, in the fourth quarter of last year. The Exynos 2600 will be featured in Samsung Electronics' flagship Galaxy S26 series smartphones, which are planned for release in the first quarter of this year. The Exynos 2600 is designed to be deployed in parallel with Qualcomm's latest chipsets.

Based on a comprehensive analysis of Samsung Electronics' internal and external processes, the wafer yield rate for this process is estimated at approximately 50%. This is a significant improvement compared to the yield rate of around 30% in the middle of last year. Unlike its predecessor (Exynos 2500), this chip did not exhibit any major defects during initial mass production.

An industry insider stated, "Specific figures may vary depending on the criteria used to judge product quality, but I understand that the Exynos 2600's yield has reached a relatively stable level of around 50%." He added, "The MX division is also encouraging the use of this chipset, so it will account for approximately 25% of all Galaxy phones."

However, it is widely believed in the industry that the success of Samsung Electronics' second-generation 2nm process (SF2P) is crucial for the company's recovery in its advanced foundry business. Compared to SF2, SF2P offers a 12% performance improvement, a 25% increase in energy efficiency, and an 8% reduction in chip size.

Another semiconductor industry insider stated, "Samsung Electronics has been working on developing the next-generation SF2P process based on the SF2 process and completed its basic process design kit (PDK) in the middle of last year." He added, "As far as I know, they recently sent guidelines to DSPs (Design Solutions Partners) requesting them to actively promote the SF2P process to their customers, rather than the SF2 process."

Potential customers are also closely watching the success of SF2P. Besides Samsung Electronics' next-generation mobile application processor, the Exynos 2700, SF2P is also responsible for the mass production of Tesla's AI semiconductors.

Last year, Samsung Electronics signed a 22 trillion won semiconductor foundry contract with Tesla. Its main goal is to mass-produce the "AI6," a high-performance system semiconductor that will be used in Tesla's next-generation front-end drive (FSD), robotics, and data centers.

The AI6 chip reportedly uses Samsung Electronics' SF2P process. Samsung Electronics plans to use its domestic wafer foundry and packaging facilities to produce initial samples of the AI6 chip, followed by full-scale mass production at its new wafer fab currently under construction in Taylor.

An industry insider stated, "The SF2P process is Samsung Electronics' first 2nm process to receive formal confirmation from an external customer that it can be mass-produced." He added, "If mass production of this chip starts smoothly, other customers will be able to use this as a reference and make more proactive mass production requests to Samsung Electronics."

Source: Compiled from zdnet