In the race for next-generation chip development, Samsung (LON:0593xq) Electronics (KS:005930) appears poised to take the lead with plans to introduce 2nm chips by 2025 and further downsize to 1.4 nm by 2027, leveraging its technical expertise and successful application of Gate-All-Around (GAA) technology. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC), once a leader in transistor-dense chipsets, is grappling with delays in its anticipated 2nm chipset launch due to slow construction at its Baoshan plant and challenges in developing GAA technology.
Samsung's success with over a 60% yield rate on its first and second-generation 3nm chips has bolstered the company's position in the market. Notably, Samsung had previously outdone TSMC with the world's inaugural 3nm chipset.
On the other hand, TSMC's current situation presents a stark contrast. The company is facing a development slowdown at its Baoshan facility due to reduced chip demand, as stated by PulseNews. This delay could impact TSMC's market position, which was planning for a monthly volume of 30,000 wafers starting Q4 of 2025.
The changing landscape might prompt a shift in orders from key TSMC clients like Apple (NASDAQ:AAPL) and Qualcomm (NASDAQ:QCOM) towards Samsung. However, pricing, quality control, and yield rates will play critical roles in such decisions.
Industry recovery is expected to begin in 2024, with peak demand forecasted by 2025 despite sagging demand for current 3nm chips.
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