2nm technology to boost TSMC's lead over competitors: Analyst

Taipei, Sept. 15 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) implementing the highly advanced 2-nanometer technology is expected to strengthen its competitive edge, an industry analyst said Sunday.

Ray Yang (楊瑞臨), an international strategy development consulting director at the government-sponsored Industrial Technology Research Institute (ITRI), told CNA that the 2nm process would help TSMC expand its lead over key competitors Intel and Samsung.

The 2-nanometer N2 chip, slated for mass production in 2025, is expected to dominate the field, Yang said, adding that TSMC's major clients, Apple Inc. and Advanced Micro Devices (AMD), are expected to be the first to use the technology.

He continued that to ensure a successful manufacturing ecosystem, the new technology will require close collaboration between TSMC and its partners in materials, equipment, semiconductor intellectual property (IP) and electronic design automation (EDA).

Given TSMC's extensive manufacturing capabilities, a "coattail effect" is expected to be created, strengthening and expanding TSMC-led alliances, Yang said.

A coattail effect refers to a smaller company or product gaining success by being associated with a larger, more successful brand.

According to TSMC, the 2nm process will be 10-15 percent faster than the current N3E and consume less power.