Samsung Cuts 2nm Wafer Prices to Undercut TSMC

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Samsung Electronics has lowered the price of its 2-nanometer wafers to approximately $20,000, undercutting rival Taiwan Semiconductor Manufacturing Co. (TSMC) by about one-third, Digitimes reported on September 29.

The price cut highlights Samsung’s push to drive clients to its advanced manufacturing lines, which have been running below capacity. TSMC, the world’s top contract chip maker, charges around $30,000 per wafer and has already secured major customers, including Nvidia, Intel, AMD, and MediaTek, for its 2nm production, which is slated to begin later this year, according to Tom’s Hardware.

Samsung, which has faced delays and scaled-back investments in its foundry business, is looking to win new business through aggressive pricing. In January, the company postponed work on its new Texas fab amid a lack of orders. However, a recent $16.5 billion deal with Tesla to produce the EV maker’s next-generation AI chips at the Texas facility could help improve utilization. Additionally, Tesla’s requirements could help Samsung raise its yield rates on advanced nodes.

While Samsung’s discounts may attract buyers unwilling to pay TSMC’s premium, the company has a history of competing on price, but faces an uphill battle in narrowing the technology and scale gap with TSMC, which controls the largest share of the global advanced chip-making market. Additionally, TSMC is still ahead, with its advanced fabs operating at full capacity and 15 major customers already committed.