Worldwide cutting-edge chip production is at capacity everywhere, as high-tech companies like Nvidia can’t get nearly enough supply to satisfy their demand. However, even though it’s a seller’s market, there’s still a degree of competition between chip foundries. Samsung has apparently elected to cut its 2nm (SF2, aka SF3P) wafer pricing down to $20,000, undercutting market leader TSMC’s purported $30,000 price by a good one-third, according to DigiTimes.
The move is aggressive for Samsung, but likely necessary as to not let its 2nm fab capacity remain unused, and ensure some return on the investment. The company’s 2nm initiatives faced significant headwinds, with Samsung reportedly cutting its investment in foundries by half back in January — all while TSMC did the exact opposite — and delaying its mint-fresh Texas chip fab due to a lack of customers.
It’s not all doom and gloom, though, as Samsung recently scored a juicy $16.5 billion deal with none other than Tesla, for the production the EV maker’s AI6 chip. It’s also noteworthy that the chips will be manufactured in Samsung’s aforementioned Texas facility, turning this deal into a nice 2-in-1 shot in the arm for the Korean company’s fab efforts. Tesla’s requirements and assistance ought to help Samsung improve its yields (as the requirement is 60 to 70%), further helping support its position as a high-end foundry.
DIgiTimes also remarks that Samsung’s foundries have a track record of competing on price. Given TSMC’s current and future fabs are running at full capacity and demanding a corresponding premium price, Samsung’s $20,000-per-wafer figure is assuredly an enticing option for clients unable or unwilling to pay TSMC’s ask.
TSMC probably remains quite unconcerned, given that it has the largest slice of the 2nm pie by a large margin, having reportedly signed up 15 large clients for its 2nm fabs, counting Intel, AMD, and MediaTek alongside long-time partner Nvidia.
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