Samsung Electronics and TSMC are engaged in an intense behind-the-scenes competition to attract customers for their upcoming 2-nanometer (1nm = 1 billionth of a meter) foundry (semiconductor contract manufacturing) process, which is set to begin mass production next year. Since the transistor structure will change starting from 2-nanometer, the difficulty in development and design will increase, making it crucial to secure initial yields during the testing phase.
So far, the pace of TSMC's development is reported to be slightly faster. They have already disclosed their test mass production schedule and are rapidly expanding production capacity. It is highly likely that Apple, one of TSMC's largest customers, will be the first to receive 2-nanometer chips, with AMD and NVIDIA also in line. Samsung Electronics is also said to have recently begun collaboration with its first customer for the 2-nanometer process, and Jin-Man Han, who became the president of the foundry division at the end of this year, has vowed to make significant improvements in yield.
According to the industry on the 16th, TSMC is scheduled to begin pilot production of the 2-nanometer process in April next year. They are expected to begin full mass production starting in the second half of the year after test production of 2-nanometer chips for fabless (semiconductor design) companies through a wafer-sharing service. There is strong opinion that the first mass-produced chip will be installed in the Apple iPhone. Samsung Electronics has also stated that it will start test production in the first half of next year and aims to establish a full-scale production system by the fourth quarter.
The 2-nanometer process will change the existing transistor structure and significantly increase development expenses and design complexity. It will require sophisticated bonding and high wafer flatness, and the atomic layer deposition (ALD) process will be advanced, making it necessary to replace and set up many of the key equipment used in the 3-nanometer process. Accordingly, TSMC has set the price of 2-nanometer wafers at $30,000 each, which is double the price of 4-nanometer and 5-nanometer wafers.
TSMC Chairman C.C. Wei recently noted, "Looking at customer demand, we've discovered that demand for 2-nanometer is greater than for 3-nanometer." He added, "This was unexpected, and we are currently preparing to actively expand production capacity." TSMC plans to expand the production capacity of 2-nanometer wafers to an average of 50,000 units per month, aiming to quickly dominate the market from the start.
Samsung Electronics' foundry division has effectively acknowledged the setbacks in the 3-nanometer gate-all-around (GAA) process that they have been working on for the past few years, planning to create a turning point starting with the 2-nanometer process. President Jin-Man Han is focusing on technological innovation and improving production efficiency, while enhancing strategic partnerships and improving market positioning.
Samsung Electronics' foundry division has begun importing various equipment to establish a 2-nanometer production line at its foundry facility 'S3' in Hwaseong starting in the fourth quarter of this year. They plan to convert the existing 3-nanometer line, capable of producing around 15,000 12-inch wafers per month, into the 2-nanometer process. Starting in the first quarter of next year, they will be testing production for their major customers' 2-nanometer chips.
Previously, Samsung Electronics successfully secured orders for a 2-nanometer-based artificial intelligence (AI) accelerator from the Japanese corporation Preferred Networks (PFN). Samsung Electronics will mass-produce PFN's AI accelerator based on the 2-nanometer process and will also provide 2.5-dimensional (I-Cube S) advanced packaging technology. This technology places multiple chips within a single package, increasing transmission speed while reducing the package area. PFN has received investments from leading corporations such as Toyota, NTT, and Fanuc, and is emerging as 'the AI national representative startup' in Japan.
A source familiar with Samsung Electronics stated, "The unprecedented appointment of two presidents through personnel changes at Samsung Electronics at the end of this year reflects Chairman Lee Jae-Yong's strong commitment to never abandon the foundry business," adding, "Utilizing the strengths of President Jin-Man Han, who is skilled in overseas sales, they will enhance their ability to secure customers, while new CTO Nam Seok-Woo will focus diligently on resolving the chronic yield issue."