Samsung’s Leading Position in 2 Nanometer Chip Technology, Surpassing TSMC within Five Years

According to the South Korean Economic Daily, the head of Samsung Electronics’ chip business stated this week that Samsung Electronics will surpass its larger OEM competitor TSMC within five years and occupy a leading position in the chip processing field.
Kyung Kye hyun, president and head of Samsung semiconductor business, said that although Samsung currently lags behind TSMC in chip processing technology, the company is expected to lead the Taiwan, China company in 2nm processing nodes.
To be honest, our OEM technology is one or two years behind that of TSMC. However, once TSMC joins the competition for 2-nanometer technology, Samsung will lead the trend, “Kyung Kye hyun said in a speech at the Korean Academy of Science and Technology. Within five years, we can surpass TSMC.”
Last year, Samsung Electronics took the lead in mass production of 3-nanometer chips based on Gate All Around (GAA) transistor structures worldwide. The GAA architecture is the next generation of outsourced micro processing technology, which is a key technology that can improve electrostatic characteristics, thereby improving performance, reducing power consumption, and optimizing chip design.
Samsung stated that compared to previous processing nodes, the performance of 3-nanometer GAA technology has been improved by 30%, energy consumption has been reduced by 50%, and chip area has been reduced by 45%.

Samsung Electronics previously stated that it plans to mass produce 2-nanometer chips based on GAA architecture starting from 2025.
TSMC and other foundry companies use a technology called FinFET technology. Due to its structure resembling the dorsal fin of a fish, it is also known as a fin transistor.
According to the report, TSMC plans to apply GAA technology to chip manufacturing processes starting from a 2 nanometer node.
Samsung’s 4-nanometer technology is two years behind TSMC, while our 3-nanometer technology is about a year behind. But when TSMC enters the 2-nanometer process, the situation will change, “said Kyung Kye hyun. “The customer is very satisfied with our GAA technology. Almost all major companies are cooperating with us, although I cannot disclose their names. Samsung’s OEM customer base is growing.”
Kyung Kye hyun stated that Samsung is also working to improve its chip packaging technology to stay ahead of competitors.
As miniaturization of semiconductor processes becomes increasingly difficult, performance will ultimately be improved through packaging, “he said.
It is said that Samsung established an advanced packaging team last year, and the company is expected to have significant improvements within 3-4 years.
The Samsung executive also stated that in the near future, the importance of storage chips in artificial intelligence (AI) servers will surpass NVIDIA’s GPUs.
By 2028, there is a possibility of supercomputers centered around storage semiconductors, “he said.
He said Samsung can bear the tightening of US policies on chip manufacturers’ business in China.
He said, “Although our factory investment in Xi’an, China requires approval, I don’t think it will cause any significant pressure on our overall business. We will strive to turn danger into opportunity.”
The escalating semiconductor competition between Washington and Beijing poses risks for global chip manufacturers, including Samsung and its local competitor SK Hynix. A senior US government official stated in February this year that the United States may set a ceiling on the level of technology that Samsung and SK Hynix can develop in China.
In the Chinese market, Samsung Electronics operates a NAND flash memory factory in Xi’an and a chip packaging factory in Suzhou. Samsung’s Xi’an factory accounts for nearly 40% of the company’s global NAND production. Since 2021, Samsung has invested $25.8 billion in its Xi’an factory.
Last year, Samsung announced sales revenue of 35.63 trillion Korean won (27.2 billion US dollars) for its China business.