TSMC expected to lead in 2nm process development: Analyst

Taipei, March 22 (CNA) Although its rivals South Korea's Samsung Electronics Co. and U.S.-based Intel Corp. are also racing to use the advanced 2-nanometer process to make microchips, Taiwan Semiconductor Manufacturing Co. (TSMC) is expected to lead its peers in this particular technology, according to Joanne Chiao (喬安), a senior semiconductor analyst at advisory firm TrendForce Corp.

In an interview with CNA, Chiao said TSMC's sophisticated products and its large production scale are expected to allow the company to continue dominating the global 2nm process market this year.

TSMC is scheduled to begin mass production of chips made on the 2nm process in northern Taiwan's Hsinchu fab in the second half of this year. In addition, the chipmaker will hold a ceremony on March 31 to mark its efforts to expand 2nm production in its Kaohsiung plant in the south.

According to TSMC, the company has grasped almost all global businesses in chips used in artificial intelligence applications by taking advantage of its 3nm process development to expand its market share. The 3nm process is the latest technology TSMC has launched for commercial production.

TSMC has anticipated its 2nm process will take more orders than the 3nm process did, as a larger number of clients have expressed interest in using the new technology.

To her knowledge, Chiao said, Samsung so far has not built a large customer base for its 2nm process yet, and its major user is expected to come from its internal operations -- System LSI.

Chiao said the top priority for the South Korean chipmaker is to improve the yield rates and customer services for a higher market share in the 2nm technology.

According to a report from The Bell of South Korea, Samsung has introduced a Gate-All-Around (GAA) structure, which reduces undesirable variability and mobility loss, to the 2nm process, as TSMC has done, but TSMC's yield rates more than double Samsung's.

As for Intel, the American chipmaker lags behind TSMC in the number of production methods, making it less flexible in meeting its clients' demands, Chiao said.

However, with Intel beginning its cooperation with United Microelectronics Corp. (UMC), a smaller contract chipmaker in Taiwan, Chiao said the partnership is expected to help the American company generate more sales in its pure-play foundry business.

According to TrendForce, TSMC commanded a 67.1 percent share in the global market during the October-December 2024 period, up from 64.7 percent a quarter earlier, leaving Samsung far behind at 8.1 percent, down from 9.1 percent.