[News] The 2nm Foundry Battle: TSMC Leads, Can Samsung and Intel Catch Up?

Since the 21st century, the global foundry market has undergone rapid development and profound changes. In this highly specialized and technology-intensive field, competition among leading players such as TSMC, Samsung, and Intel has not only driven technological advancements but also shaped the entire industry’s landscape.

Currently, only three companies—TSMC, Samsung, and Intel—are actively advancing sub-7nm process nodes in the global foundry market.

According to data from market research firm TrendForce, in Q3 2024, TSMC held the largest market share at 64.9%, up 2.6 percentage points from 62.3% in Q2, further solidifying its leading position. Samsung ranked second with a 9.3% market share, down 2.2 percentage points from 11.5% in the previous quarter.

Meanwhile, Intel, which reported a $2.3 billion loss in its foundry division for Q4 2024, did not make it into the top ten foundry rankings.

TSMC Maintains Stability: 2nm Process Gains Strong Customer Interest

TSMC’s Q4 2024 earnings report revealed that advanced nodes continue to drive revenue. The 3nm process accounted for 26% of Q4 wafer sales, 5nm contributed 34%, and 7nm made up 14% of the total.

The N3 process has become the most advanced semiconductor logic technology in the industry. According to TSMC’s roadmap, its 2nm (N2) process is on track for mass production in the second half of 2025, with large-scale production planned for 2026. N2 technology will leverage nanosheet transistors, delivering significant performance and power efficiency improvements.

Additionally, as TSMC prepares for 2nm mass production, the company is already planning for post-2nm advancements, entering the angstrom era. The first post-2nm node, named A16, will use next-generation nanosheet transistors and adopt the Super PowerRail (SPR) architecture, providing higher computing performance and superior energy efficiency.

Samsung Aims for a Comeback: 2nm Process to Boost Customer Base

At the 7nm node, Samsung was the first to introduce EUV lithography with its 7LPP process in 2018, claiming that it reduced total mask layers by 20% compared to non-EUV processes, offering time and cost savings for customers.

In 2019, Samsung shifted focus to 5nm, achieving mass production in the second half of the year.

Later, Samsung pioneered GAA transistor technology for its 3nm process, achieving mass production in June 2022, ahead of its competitors.

For 2nm, reports from South Korea indicate that Samsung’s SF2 process has achieved higher-than-expected initial yields. The trial production of its next-generation Exynos 2600 processor has reached a 30% yield rate. If yield improvements proceed smoothly, mass production could start in Q4 2025, positioning it in direct competition with TSMC’s N2 process.

Intel Struggles to Recover: Success of Intel 18A is Critical

Intel 18A has become a pivotal factor in Intel’s advanced process development. At CES 2025, Intel’s interim co-CEO Michelle Johnston Holthaus showcased the first Intel 18A process chip, the Panther Lake processor, announcing mass production in the second half of 2025.

The chip has been tested by eight customers, successfully booted, and achieved its target DDR memory performance. Panther Lake is expected to feature Cougar Cove P-cores, Skymont/Darkmont E-cores, and up to 12 Xe3 (Celestial) iGPU cores.

Industry analysts note that Intel 18A has made progress in R&D, sample testing, product planning, and mass production timelines. However, Intel still faces several challenges in ensuring the successful ramp-up and commercialization of the process.

(Photo credit: Intel)