Apple was expected to be the first to launch a processor built on the 2nm process. However, the company is said to have delayed the plan due to the high cost of TSMC’s 2nm process. A new report claims that Nvidia and Qualcomm are now considering using Samsung’s 2nm process.
To diversify their supply chain, Nvidia and Qualcomm are considering Samsung’s 2nm process
Apple was rumored to be packing a 2nm processor (expected to be called the A19 Pro) inside the iPhone 17 by the end of 2025. However, according to a new report from ChosunBiz, Apple has postponed the production of 2nm processors until 2026 due to TSMC’s extremely high costs.
Currently, Japan’s Rapidus, South Korea’s Samsung Foundry, and Taiwan’s TSMC are trying to start mass production of processors based on the 2nm process. TSMC is said to be leading the race with yields reaching 60% and is conducting trials with its customers.
Apple, Nvidia, and Qualcomm are said to be the first brands to launch processors manufactured using the 2nm process. However, TSMC’s production capacity is extremely limited. The company is investing heavily in expanding its current production capacity from 10,000 wafers per month to 80,000 wafers per month. However, this will not happen until 2026.
Therefore, Nvidia and Qualcomm are said to be conducting trials with Samsung Foundry’s 2nm process. While Samsung has secured orders from non-fab chipmakers like Preferred Networks, it still needs big customers like AMD, Nvidia, and Qualcomm to secure enough orders to make a profit.
Furthermore, Nvidia and Qualcomm do not want to rely too much on TSMC because they will not have bargaining power and will have to pay a lot of money to TSMC. Therefore, they want to diversify their supply chain and have some processors manufactured by Samsung Foundry’s 2nm process.
Samsung Foundry’s reputation is not good, especially after Samsung and Qualcomm’s 4nm processors faced heat issues. Since then, Samsung Foundry has not been able to find any customers for its 3nm process. This may be its last chance.
Samsung’s entire semiconductor division is facing huge risks because the selling price of DRAM and NAND has dropped sharply. Its HBM3E memory has not been certified by Nvidia yet. Therefore, things could get very bad at Samsung Foundry if its 2nm process fails to attract customers.