TSMC is continuing to solidify its position as the dominant foundry in the semiconductor industry. Recent reports from the Taiwan Economic Daily reveal that TSMC’s 2nm yield has reached an impressive 60%, meaning that 60 out of every 100 dies sliced from a silicon wafer meet the stringent quality standards. This impressive yield is a key factor in TSMC’s continued success, as yields directly affect the cost and availability of chips. In comparison, Samsung Foundry, the second-largest foundry, is struggling with its 2nm yield, which currently stands at just 40%.
This marks a significant 50% shortfall when compared to TSMC’s performance.
Yields are critical in the chip industry, as they determine not only pricing but also whether a chip will be widely available or in short supply. To illustrate this, imagine two bakeries making chocolate chip cookies. TSMC’s bakery (The Soft Melt in Your Mouth Cookie Company) bakes 100 cookies, but only 40 are imperfect. With a yield of 60%, TSMC can sell its 60 perfect cookies at $3.33 each to reach $200 in sales. Meanwhile, Sammy’s Cookies, with a yield of just 40%, would need to sell each of its 40 cookies at $5 to meet the same sales target. This simple example highlights the importance of yield in both the chip industry and beyond.
TSMC’s impressive customer roster includes top-tier companies like Apple, Nvidia, AMD, Qualcomm, and MediaTek. Apple, Nvidia, and AMD have already committed to TSMC’s 2nm production, and MediaTek is expected to finalize its 2nm design by September. These high-profile clients rely on TSMC’s higher yields to ensure they can secure the massive volumes of chips needed for their products.
While Samsung Foundry initially hoped to gain a competitive edge by being the first to implement Gate-All-Around (GAA) transistors, TSMC is now poised to adopt GAA for its 2nm production, further strengthening its position. GAA transistors feature vertically stacked nanosheets that encase the channel on all four sides, reducing current leakage and boosting drive current. This results in chips that perform better, consume less energy, and offer greater density. TSMC’s adoption of GAA will improve the performance of its chips by 10% to 15%, reduce energy consumption by 25% to 30%, and increase transistor density by 15% compared to its 3nm chips. With these advancements, TSMC’s 2nm chips will offer significant improvements over its previous generations.
In addition, the Taiwan Economic Daily reports that TSMC has now reached a yield threshold where mass production of 2nm chips is possible. Meanwhile, Samsung Foundry is expected to use its 2nm node to manufacture the Exynos 2600 Deca-core processor, which will power next year’s Galaxy S26 flagship models in select markets. However, with its continued yield challenges, Samsung may find it difficult to compete with TSMC’s superior production capabilities.