Will TSMC Hold Its Lead in the Fierce 2-Nanometre Chip Race with Samsung and Intel Gaining Ground?

Zinger Key Points
  • TSMC leads the race in 2-nanometre chips, with Samsung and Intel striving to close the gap in next-gen tech.
  • Chip giants TSMC, Samsung, Intel vie for supremacy in advanced 2-nanometre processor technology.

Leading semiconductor companies, including Taiwan Semiconductor Manufacturing Co TSMSamsung Electronics Co SSNLF, and Intel Corp INTC, are in a heated race to develop "2-nanometre" processor chips, pivotal for the next wave of smartphones, data centers, and artificial intelligence. 

TSMC, currently at the forefront, is the analysts' top pick to maintain its dominance. However, Samsung and Intel view the push towards 2-nanometre technology as a chance to close the gap with TSMC, the Financial Times reports.

Also Read: Is Intel's Reign In Jeopardy? ARM-Based Challengers Threaten Chip Giant's Legacy

Chipmakers have long focused on creating smaller, more efficient chips, with "2-nanometre" and "3-nanometre" terms now representing each new generation's technological leap rather than actual physical measurements. 

TSMC has made significant progress with its "N2" prototypes and is already sharing test results with major clients like Apple Inc AAPL and Nvidia Corp NVDA.

Samsung is aggressively marketing its 2-nanometre prototypes at competitive prices to attract big names like Nvidia. 

Intel, once the industry leader, is ambitiously planning to produce its next generation of chips by the end of next year, potentially surpassing its Asian competitors.

Mass production of TSMC's N2 chips is likely for 2025, with initial rollouts targeting mobile devices, followed by PC and high-performance computing chips. 

However, the challenges and costs of advancing to newer technology generations are increasing, with performance improvements becoming less pronounced.

Having pioneered mass production of 3nm chips and the new "Gate-All-Around" transistor architecture, Samsung faces challenges with yield rates, especially for more complex chips. 

Intel is advancing with its "18A" node, aiming to begin production in late 2024. Amidst this technological race, companies are also considering geopolitical factors and the potential need to diversify chip production beyond TSMC despite its current advantages in cost, efficiency, and trust.

Price Action: TSM shares traded higher by 0.49% at $100.85 on the last check Monday.

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