Even though most of the world's semiconductor foundries are ramping up production of their 3nm processes, the battle for next-generation 2nm contracts has already begun. Samsung has announced a new deal with an undisclosed company to create an AI chip on its upcoming 2nm node, notching an early win. Details on the agreement are sparse, but it shows Samsung's foundry business could begin to rival TSMC (and Intel) with its future processes.
In its recent earnings call, Samsung announced its new 2nm contract but didn't say which company it is working with. A website named Liberty Times Net broke the news, noting in its headline that it's part of Samsung's effort to catch up with TSMC in the high-stakes battle over next-generation contracts. The report states the order includes 2nm chips for AI purposes along with HBM3 memory and advanced packaging, indicating it's a data center product and certainly not something for client purposes. The company is expected to launch its 2nm SF2 process in 2025, and it'll utilize its existing gate-all-around (GAA) process with MBCFET, which stands for Multi-Bridge Channel Field Effect Transistor, a nanosheet design.
Samsung has high hopes for its 2nm node, which will reportedly offer a 25% improvement in efficiency at similar clock frequencies compared to its second-generation 3nm GAA design. Additionally, it's expected to offer 12% better efficiency at the same power levels, with a 5% reduction in total die size. Samsung previously stated that its first 2nm wafers will target smartphones, so this new deal could be the first PC-related contract for its most advanced process. Techpowerup speculates the deal is likely for a hyperscale data center company like Google, Microsoft, or Alibaba.
The news of Samsung's contract marks an escalation in the brewing battle for 2nm chips and beyond. Samsung hopes to go head-to-head with industry leader TSMC on the 2nm battlefield, as it could beat its rival to the market again like it did with its 3nm process in 2022. TSMC isn't just sitting around and counting its piles of cash, though, as it's reportedly already in talks with Apple about providing 2nm chips for the next-generation iPhone and M-series SoCs. There's also Intel to consider here, which will launch Intel 20A this year with Arrow Lake. If that happens, it will have beaten both Samsung and TSMC to market with the first 2nm product.
Samsung has also been rumored to be considering offering discounts for its 2nm wafers, hoping to lure some business away from TSMC and Intel. Perhaps that strategy has already paid off with this latest deal, but that's just speculation on our part. Either way, the race is officially on to see which foundry can lure the most clients to its 2nm process, and for the first time in several years, it seems like it'll be a bloody three-way brawl.
