Samsung takes a scalpel to its 2nm wafer price tag, bringing it down to $20,000 — Korean chipmaker now undercuts rival TSMC by 33%

(Image credit: Samsung Semiconductor Global)

Worldwide cutting-edge chip production is at capacity everywhere, as high-tech companies like Nvidia can't get nearly enough supply to satisfy their demand. However, even though it's a seller's market, there's still a degree of competition between chip foundries. Samsung has apparently elected to cut its 2nm (SF2, aka SF3P) wafer pricing down to $20,000, undercutting market leader TSMC's purported $30,000 price by a good one-third, according to DigiTimes.

The move is aggressive for Samsung, but likely necessary as to not let its 2nm fab capacity remain unused, and ensure some return on the investment. The company's 2nm initiatives faced significant headwinds, with Samsung reportedly cutting its investment in foundries by half back in January — all while TSMC did the exact opposite — and delaying its mint-fresh Texas chip fab due to a lack of customers.

It's not all doom and gloom, though, as Samsung recently scored a juicy $16.5 billion deal with none other than Tesla, for the production the EV maker's AI6 chip. It's also noteworthy that the chips will be manufactured in Samsung's aforementioned Texas facility, turning this deal into a nice 2-in-1 shot in the arm for the Korean company's fab efforts. Tesla's requirements and assistance ought to help Samsung improve its yields (as the requirement is 60 to 70%), further helping support its position as a high-end foundry.

TOPICS

Bruno Ferreira is a contributing writer for Tom's Hardware. He has decades of experience with PC hardware and assorted sundries, alongside a career as a developer. He's obsessed with detail and has a tendency to ramble on the topics he loves. When not doing that, he's usually playing games, or at live music shows and festivals.