NVIDIA is rumored to ditch TSMC's 2nm process, and instead turn towards Samsung Foundry, given the high costs associated and the Taiwan giant's growing influence in controlling prices.
NVIDIA & Other Tech Giants Now Focused On Diversifying 2nm Supply China, Including Partners Other Than TSMC
Well, TSMC's 2nm superiority might be jeopardized here, as mainstream industry clients are now looking towards alternatives. In a report by Ctee citing South Korean media, NVIDIA and others are already in discussion to move away 2nm orders from the Taiwan giant, and shifting it to the likes of Samsung Foundry, given that the parties involved believe that 2nm costs are way too higher for adoption right now. With TSMC being the sole "credible" supplier, the firm is using this stance to control the prices.
Before we dive into the report, it is essential to take this rumor with a grain of salt. Right now, mainstream 2nm suppliers include TSMC, Samsung, and the Japanese firm Rapidus, with the latter two companies "apparently" being behind the Taiwan giant in terms of yield rates. While this trend has been consistent with previous nodes as well, it seems like TSMC will experience a greater rivalry this time, given that its key clients are now focused on diversifying the 2nm supply, adding in new partners.
In particular, it is claimed that NVIDIA is exploring the option of getting 2nm from Samsung Foundry; however, the firm is reluctant for now, given Samsung's past track record with clients like Qualcomm. Apart from Team Green, we recently reported on how Qualcomm plans to adopt a "dual-source" strategy, including both TSMC and Samsung in its 2nm supply chain, so it won't be wrong to say that the next "big process" will likely have more competitors, rather than TSMC alone.
The adoption of 2nm looks slowed for now, given that Apple has shifted its plans to 2026, and with NVIDIA and Qualcomm exploring other options, it seems like integration in consumer products will take time. However, given that Samsung's 2nm process fails to impress the markets, companies will have no other option and will ultimately revert to TSMC.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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