Samsung-TSMC to Compete in 3nm Ultra-Fine Process This Year... Intense Technology Rivalry

[Asia Economy Reporter Jeong Hyunjin] This year, the competition for sub-3-nanometer (nm, one billionth of a meter) ultra-fine process technology between Samsung Electronics and TSMC is set to intensify. Samsung Electronics has announced plans to be the first in the industry to apply Gate-All-Around (GAA) technology and to mass-produce 3nm semiconductors earlier in the first half of the year, drawing attention to whether it can surpass industry leader TSMC and secure a leading position in next-generation technology.

According to business circles on the 2nd, Samsung Electronics is expected to begin mass production of 3nm semiconductors using GAA technology in the first half of this year. Compared to the existing FinFET-based 5nm process, performance improves by 30%, power consumption decreases by 50%, and area is reduced by 35%. The first generation of 3nm is scheduled for mass production in the first half of the year, with the second generation starting in 2023. Currently, Samsung Electronics System LSI and the US-based AMD are expected to be Samsung Electronics’ first 3nm foundry customers.

If Samsung Electronics succeeds in mass-producing 3nm according to its roadmap, it will be the first in the industry to achieve ultra-fine process production ahead of TSMC. According to foreign media, TSMC plans to mass-produce 3nm products in the second half of this year. Some predict that production may be delayed until the fourth quarter, later than initially expected. TSMC plans to maintain the existing FinFET method for the 3nm process, citing concerns that sudden adoption of GAA could reduce semiconductor stability.

Due to the nature of the foundry business, the earlier the development and mass production of ultra-fine processes, the more advantageous it is for securing market share and new customers. Accordingly, the two companies capable of sub-5nm fine processes worldwide are prioritizing securing technological competitiveness and are engaged in a battle to attract major customers. As of the third quarter of last year, TSMC held 53.1% of the total foundry market share, while Samsung Electronics held 17.1%, but in ultra-fine processes, the gap narrows significantly to about 60:40.

Both Samsung Electronics and TSMC announced plans last year for ultra-fine 2nm processes following 3nm, so both companies are expected to accelerate development. In October last year, Samsung Electronics announced at the Foundry Forum a roadmap to begin mass production of 2nm processes based on GAA in 2025. This was the first time Samsung Electronics revealed its 2nm mass production plan, expressing its goal to lead the next-generation transistor market.

TSMC also announced plans to develop and apply 2nm processes for mass production by 2025. TSMC plans to introduce GAA technology starting from 2nm and recently reportedly held discussions with the Taiwanese government regarding the construction of a new 2nm foundry plant. TSMC plans to invest 1 trillion Taiwanese dollars in the 2nm production facility. TSMC indicated that it will accelerate 2nm process development alongside the start of 3nm process mass production this year.

Additionally, Intel has joined the technology competition, potentially turning it into a three-way race. In July last year, Intel announced its ultra-fine process roadmap and stated it aims to secure semiconductor process technology at the 2nm level by 2024. Intel mentioned the concept of 'angstrom (?, one ten-billionth of a meter),' which is smaller than a nanometer, expressing confidence in leading technology ahead of TSMC and Samsung Electronics, who currently dominate the foundry market. However, the market remains skeptical about whether Intel, which has only recently resumed its foundry business, can achieve rapid technological development.

A representative from the domestic semiconductor industry said, "Ultra-fine process technology is a key factor in gaining an advantage in the foundry market," adding, "With the introduction of new technology like GAA and Intel entering the foundry market, industry attention on technological capabilities will increase significantly."

This content was produced with the assistance of AI translation services.