As semiconductor technology progresses towards more advanced nodes, the 2-nanometer (N2) process has become the focal point of the global foundry industry. Leading the charge in this race is TSMC, whose advancements in the 2-nanometer (N2) process are closely observed by many. According to supply chain reports, TSMC completed its trial production of the 2-nanometer process by the end of the first quarter of 2025, surpassing yield expectations and establishing a strong foundation for mass production later that year. Meanwhile, Samsung is also making strides with its 2-nanometer process, although it remains behind TSMC.

TSMC's 2-nanometer process leverages Gate-All-Around (GAA) nanosheet transistor technology, enhancing performance and energy efficiency by encasing the transistor structure on all four sides, as opposed to traditional FinFET architectures. TSMC has stated that, in comparison to the 3-nanometer (N3) process, the 2-nanometer process achieves approximately 15% better performance at the same power consumption, a 15% increase in transistor density, and a 25% to 30% reduction in power usage. Additionally, advancements in SRAM density have been made, reaching 38Mb/mm² versus 3nm's 33.55Mb/mm², proving valuable for high-performance computing (HPC) and smartphone SoCs. TSMC's trial production yield at its Hsinchu Baoshan plant (Fab 20) in early 2025 was notably impressive, exceeding 90%, well above the 70% to 80% threshold required for volume production. This achievement, though primarily based on memory products, highlights TSMC's significant process optimization expertise. To support mass production, TSMC is ramping up its equipment investment, having ordered 30 of ASML's EUV lithography machines in 2024 and an additional 35 planned for purchase in 2025, including state-of-the-art high-numerical-aperture (High-NA) EUV lithography machines. This equipment will enable TSMC to scale 2nm chip production in the latter half of 2025, with an initial estimate of 50,000 wafers per month by year-end, increasing to between 120,000 and 130,000 wafers by 2026.

The 2-nanometer process has captured the attention of many industry giants. Apple is anticipated to be amongst the first to integrate this process, with its upcoming M5 chip and the A19 Pro chip destined for future Macs, iPads, and the iPhone 17 series. Meanwhile, companies like NVIDIA, AMD, and Qualcomm are vigorously negotiating capacity to meet demands in the artificial intelligence and high-performance computing markets. TSMC is expanding its factory capabilities for this purpose, with its Kaohsiung fab (Fab 22), initially set to house two 2-nanometer facilities, now considering the construction of a third to cater to market demand.

In contrast, Samsung's progress with the 2-nanometer process lags behind. Samsung also employs GAA technology and is scheduled to mass-produce its first 2-nanometer chip, the Exynos 2600, in November 2025, targeting deployment with the Galaxy S26 series in 2026. Reports from Korea indicate that Samsung's 2-nanometer pilot production yield improved from 20%-30% at the start of the year to 40%-50%, still leaving a significant gap compared to TSMC. Samsung is working on optimizing its production lines and adjusting strategies to attract more customers. However, in this winner-takes-all market, TSMC dominated the global foundry market with a 67.1% share in Q4 2024, far outpacing Samsung's 8.1%.

Intel is also actively pursuing the 2-nanometer landscape, with its 18A process (equivalent to a 2-nanometer level) slated for mass production in 2025. Its main product, Clearwater Forest, has completed design, employing RibbonFET transistors and backside power delivery network (BSPDN) technology. Despite Intel's minimal market share in the foundry sector (about 1%), its technological pathway demonstrates competitiveness. Additionally, Japan's emerging foundry Rapidus plans to commence 2-nanometer trial production in April 2025, aiming for mass production by 2027, though reliant on IBM's technology, challenging its market influence in the near term.

While the mass production of the 2-nanometer process signifies a significant technological milestone, it also results in increased costs. TSMC's price for 2-nanometer wafers is around $30,000 per wafer, roughly 10% higher than the 3-nanometer process, attributed to investments in sophisticated equipment and heightened process complexity. Looking ahead, TSMC also plans to introduce a 1.4-nanometer (A14) process, anticipated for mass production by 2028, potentially pricing wafers as high as $45,000 each.

In terms of industry trends, the commercialization of the 2nm process will further solidify TSMC's market dominance. The rising demand for generative AI and high-performance computing has put advanced processes at the heart of foundry competition. TSMC continues to maintain its lead in the 2nm era with stable yields, an extensive customer base, and robust capacity planning. Although both Samsung and Intel are advancing their technologies, challenging TSMC's leadership remains difficult in the short term. Moving forward, as process technology nears its physical limitations, foundries must balance cost management, technological innovation, and customer collaboration to sustain competitive advantages.

TSMC's advancements in the 2nm process set a new industry benchmark. Its high yield rates, outstanding performance, and well-defined mass production plans not only cater to AI and high-performance computing needs but also support the evolution of consumer electronics like smartphones.