[Peace&Chips] TSMC Prepares for 2nm Era... Confident in GAA, Samsung and Intel Enter Speed Race

Apple to Become TSMC's First 2nm Customer in Taiwan?
TSMC and Intel Launch First GAA at 2nm
First Introduction of Backside Power Supply Technology Expected
Samsung Prepares 2nm with GAA Competitiveness

As the new year begins, new developments continue to emerge in the foundry (semiconductor contract manufacturing) industry. Recently, it seems the era of 2-nanometer (nm; 1 nm is one billionth of a meter) technology is approaching, with related news constantly circulating. This week, Taiwanese media outlet Digitimes reported that Taiwan foundry company TSMC's first 2nm customer is Apple. The report stated that Apple has secured initial volume. Global media outlets, including those in the U.S., also covered the news, showing keen interest.

This attracted attention as it marked a step forward following last month's foreign media reports that TSMC showcased 2nm prototypes to major customers such as Apple and Nvidia and shared test results. TSMC reportedly told foreign media, "The development of N2 (2nm) technology is progressing smoothly, aiming for mass production in 2025," adding, "It will be the most advanced semiconductor technology in the industry."

Exterior view of TSMC Fab 6 factory in Taiwan / Photo by TSMC

In the semiconductor industry, TSMC is expected to begin mass production of 2nm chips in the second half of next year. After announcing its Q4 results last year, TSMC expressed confidence during a conference call that it is reaching its 2nm yield targets faster than planned. Additionally, TSMC has developed a ‘backside power delivery’ technology that supplies power to the rear of semiconductor chips to enhance performance, and plans to introduce this technology in the 2nm process for mass production in 2026.

TSMC is also busy preparing production facilities to realize these plans. Besides the Hsinchu Science Park in northwestern Taiwan, it is working to establish related facilities at the Southern Taiwan Science Park in Kaohsiung. A total of four fabs (factories) are planned. There are even reports that equipment for 2nm mass production will be delivered to the Baoshan fab in Hsinchu Science Park starting in April.

U.S.-based Intel, which re-entered the foundry market in 2021 and is actively enhancing its competitiveness, plans to start mass production of its 20A (2nm-class) process in the first half of this year. Furthermore, Intel has announced plans to introduce the 1.8A (1.8nm-class) process in the second half of the year. Intel’s strategy is to produce its own products using the 20A process to improve its technology and then begin accepting orders from external foundry customers starting with the 18A process.

Notably, both TSMC and Intel are introducing many new technologies for the first time in their 2nm processes. Both companies plan to debut the aforementioned backside power delivery technology in their 2nm processes and will also adopt the next-generation transistor structure called ‘Gate-All-Around (GAA).’ GAA is a key technology that increases the number of surfaces where the transistor gate (the door through which current flows) contacts the channel (the path for current flow) to four, thereby enhancing semiconductor performance compared to the existing FinFET structure.

Samsung Electronics began mass production of its 3nm process in 2022, already having adopted GAA technology. Having introduced GAA three years earlier than competitors and undergone trial and error, Samsung expects its GAA technology competitiveness to become fully apparent in the 2nm era. With TSMC holding a majority share of the global foundry market, it will be interesting to see how much Samsung Electronics and Intel, as latecomers, can catch up to TSMC in the 2nm era.

Editor's NoteSemiconductors, often called the rice of modern industry. Although we hear the term daily, it’s hard to explain when asked. Peace & Chips will make the complex concepts and overall industry trends easy to digest. Just place your spoon and enjoy.

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