TSMC Is Saturated, Samsung Wants to Take Advantage: Targeting a 130% Increase in 2nm GAA Chip Orders

The global semiconductor industry is undergoing a critical adjustment phase, where the difficulties of a dominant player can translate into vital opportunities for its direct competitor.

While TSMC is facing evident limitations in production capacity and technical challenges, Samsung Electronics has decided to implement an aggressive maneuver to close the gap.

The South Korean giant has set a precise and ambitious numeric target: to increase orders by 130% for its 2-nanometer technology based on Gate-All-Around (GAA) transistors.

This is a strategy rooted in recent technical progress that aims to reposition the Korean foundry as the only real alternative to the Taiwanese monopoly.

Samsung Foundry Aims to Increase 2nm GAA Chip Orders by 130%

The foundation of this renewed commercial push lies in the most recent technical data. The production process at 2nm GAA has reached a 50% yield, a threshold which, while leaving ample room for improvement, signals the entry into a phase of maturity sufficient to start serious discussions with major customers.

According to South Korean analysts, the choice to communicate a specific figure such as the 130% increase in orders is not random, but represents a strong signal of confidence in the ability to guarantee stable supplies.

Supporting this thesis is the stabilization of the Exynos 2600 processor production, which serves as tangible evidence of the viability of the manufacturing process.

Samsung’s focus is decisively shifting toward AI-focused chips, a sector that demands extreme performance and low power consumption. In this context, Tesla has already confirmed its trust in the Korean technology, signing an agreement valued at $16.5 billion, positioning itself as one of the key customers for the adoption of the new advanced nodes.

The American Strategy and the Geopolitical Factor

A fundamental element of this expansion plan concerns geopolitics and the physical presence on U.S. soil. The Taylor facility in Texas, originally designed for 4-nanometer production, is undergoing a strategic conversion toward 2nm GAA.

This move has a dual significance: on one hand it allows Samsung to erode TSMC’s market share by offering the most advanced technology directly in the United States; on the other hand, it represents a clear attempt to align with the priorities of the Trump administration, favorable to domestic production of critical components.

Times are extremely tight: EUV lithography equipment test operations are scheduled to begin as early as March. This speed of execution demonstrates the willingness to bring the plant online as quickly as possible, turning it into a crucial hub for supplying next-generation chips to North American customers.

Tesla present, and Qualcomm?

Despite the optimism shown in reports and the presence of high-profile names like Tesla, a significant detail emerges: the absence of references to Qualcomm. The San Diego giant, a historic partner of both foundries, does not appear among the clients cited in Samsung’s 2nm expansion context.

Rumors suggest that the next Snapdragon 8 Elite (Gen 6 and Pro variant) will continue to exclusively leverage the TSMC N2P node.

This scenario indicates that, although Samsung is gaining ground and credibility as a reliable ‘second source,’ the negotiations with some of the major players in the mobile sector could still be at an impasse or not yet started, leaving TSMC with temporary dominance in specific market segments.