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Choi Si-young, president and general manager of Samsung Electronics’ foundry business, speaks at the Samsung Foundry Forum 2023 in Silicon Valley on June 27. (courtesy of Samsung Electronics)

Competition is heating up in the global foundry sector over mass production of 2-nanometer chips, a cutting-edge manufacturing process for the next generation of semiconductors.

Samsung Electronics has released a detailed roadmap for adopting a 2nm process in the production of semiconductors for mobile devices in 2025, flexing its technological chops for interested clients. A nanometer (nm) is one-billionth of a meter.

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s biggest foundry (a company that produces chips for other companies), is gearing up for a test run of its 2nm process in the second half of the year. Intel, a traditional powerhouse in the semiconductor industry, is also boosting its investment in the foundry sector, foreshadowing intense competition between these companies.

Samsung Electronics released a specific roadmap for the 2nm process at Samsung Foundry Forum 2023, which was held in Silicon Valley on Tuesday. The company plans to implement the 2nm process in mobile semiconductor production in 2025. Samsung will then expand the 2nm process to high-performance computing in 2026 and to automobile semiconductors in 2027.

The nanometer count here refers to the linewidth of semiconductor circuits. Decreasing linewidth enables the production of low-power, high-performance and lightweight chips. The 2nm process will lead to a 12% improvement in performance and a 25% improvement in power efficiency over the 3nm process, Samsung explained.

TSMC and Samsung Electronics are the frontrunners in the latest manufacturing technology. While Samsung is about one year behind TSMC on the 3nm process, the two companies are expected to be neck and neck when the 2nm process is launched in 2025.

Samsung was the first to introduce gate-all-around (GAA) transistor technology — regarded as key to competition on the nano level — in June 2022, and it believes that technology will help it leapfrog TSMC.

GAA transistors are a key component of next-generation semiconductors, counteracting the performance drop that results from process miniaturization and boosting processing speed and power efficiency. TSMC will reportedly implement that technology in its 2nm process in 2025.

While TSMC had planned to do a test run of its 2nm process early next year, it has brought those plans forward to this year. The accelerated time frame appears to be aimed at fending off Samsung’s hot pursuit and compensating for Intel’s return to the foundry business.

Taking the lead in 2nm production could give TSMC a solid advantage in attracting clients that need the latest technology. The Liberty Times, a Taiwanese newspaper, reported that TSMC has secured Apple and Nvidia as clients for its 2nm process.

Processes at the 3nm level and below will likely be a sharply contested battleground between rival chipmakers.

Market research firm Omdia predicts that the global semiconductor market will grow from US$552.8 billion in 2023 to US$716.2 billion in 2026, amounting to a yearly average of 9.1%, while the foundry market will grow from US$120.2 billion in 2023 to US$187.9 billion in 2026, for a yearly average of 12.9%. Significantly, 3nm processes and below are expected to increase as a share of total foundry sales from 8% to 24.4% over the same period.

By Ock Kee-won, senior staff writer

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