The Race to 2nm: Samsung, TSMC, and Intel Charge into the Future of Chip Technology
In the world of semiconductors, size matters—and smaller is better. The global chipmaking titans, TSMC, Samsung Electronics, and Intel, are fiercely racing to commercialize the next-generation chip technologies: the 2-nanometer (2nm) and 1.8-nanometer (1.8nm) processes. With target production dates set for the latter half of 2025, these breakthroughs are expected to reshape the tech landscape in mobile computing, artificial intelligence, and high-performance computing.
TSMC Leads the Foundry Market
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest and most dominant foundry player with a commanding 67.6% market share, has already begun accepting orders for its 2nm chips. These cutting-edge chips will be manufactured at its facilities in Baoshan and Kaohsiung, Taiwan, using gate-all-around (GAA) transistor technology—an advancement over the existing FinFET structure.
GAA allows for better control over current flow and improved energy efficiency. This change marks a significant step forward in power/performance balance, particularly for mobile and AI workloads. TSMC is confident in its roadmap, projecting full capacity utilization of its 2nm production lines by late 2025.
Major tech companies—Apple, Qualcomm, and AMD—are expected to be among the first to adopt TSMC’s 2nm chips. With strong customer backing and aggressive timelines, TSMC is well-positioned to maintain its dominance even in the next generation.
Samsung’s Strategic 2nm Push
Samsung Electronics, which currently holds a 7.7% share of the foundry market, is not far behind. The South Korean giant is gearing up to mass-produce 2nm mobile chips by 2025, most notably for its in-house Exynos 2600 processor. This marks a pivotal move for Samsung, as the company seeks to bounce back from previous yield issues in its early 3nm production efforts.
Samsung’s 2nm chips will also use GAA transistor architecture, and the company is investing heavily to enhance yield and reliability. Unlike TSMC, Samsung is not just a foundry but also an integrated device manufacturer (IDM), designing its chips and competing with major mobile SoC players.
To strengthen its foundry business and attract top-tier clients, Samsung recently appointed Margaret Han, a former TSMC executive, to lead its US foundry division. This strategic hire is aimed at boosting Samsung’s presence in the American market and increasing trust among potential clients.
Intel’s Bold Return with 18A Process
Intel, once a frontrunner in chip innovation, is making a calculated comeback with its 18A (1.8nm) process. Scheduled for commercial rollout in late 2025, the 18A process marks Intel’s most advanced node in years. After years of lagging behind in process node innovation, Intel’s re-entry into the ultra-small process race could reestablish its competitive edge.
Intel’s strategy differs slightly, as it focuses not only on internal chip production but also on its Intel Foundry Services (IFS) to attract external clients. With plans to fabricate chips for third-party customers, Intel aims to directly challenge TSMC and Samsung on both technology and customer acquisition.
What Makes 2nm and 1.8nm So Important?
The shift to 2nm and 1.8nm processes isn’t just about bragging rights. Shrinking transistor sizes improves chip performance, increases energy efficiency, and reduces heat generation—all critical factors for powering everything from smartphones and tablets to servers and autonomous vehicles.
GAA technology, in particular, is a game-changer. While FinFET (used in 5nm and 3nm nodes) surrounds the gate on three sides, GAA transistors wrap the gate completely around the channel, enabling even better electrostatic control and current modulation.
With these advancements, 2nm chips are expected to deliver:
- Up to 20-30% better power efficiency
- 10-15% higher performance
- Smaller die size, enabling more compact and powerful devices
Market Implications and Customer Impact
The battle for 2nm supremacy is more than a technical race—it’s a commercial and geopolitical one. With demand for high-performance and low-power chips rising globally due to AI, 5G, and cloud computing, whoever leads the 2nm charge will enjoy considerable influence in the tech ecosystem.
TSMC’s early traction with Apple and AMD ensures a strong start, while Samsung’s diversification with in-house chips and third-party clients gives it resilience. Intel’s entry as a challenger is particularly interesting, as it opens up more competition and choices for chip customers globally.
The Road Ahead
With all three giants—TSMC, Samsung, and Intel—targeting late 2025 for mass production, the semiconductor industry is poised for one of its most exciting transitions in decades. These developments not only promise better performance for everyday devices but also power the next wave of AI, AR/VR, autonomous driving, and edge computing applications.
As 2025 approaches, the question remains: Who will win the 2nm race? While TSMC currently holds the pole position, Samsung’s aggressive investments and Intel’s comeback ambitions are set to make it a thrilling contest. For consumers and tech companies alike, the outcome will shape the future of innovation.