Chasing chip king TSMC, Samsung and Intel chart courses nanometers apart

Intel and Samsung Electronics — the two top challengers of TSMC’s dominance in the semiconductor contract manufacturing business — are each revising their advanced process road maps, taking different strategic approaches to claim the throne.

A silicon wafer on display during the Smart Manufacturing Expo in Taipei, Taiwan, on April 18, 2025. The expo is a leading event highlighting the latest innovations in intelligent manufacturing, featuring technologies like automation, AI, IoT, and robotics. [EPA/YONHAP]

Intel and Samsung Electronics — the two top challengers of TSMC’s dominance in the semiconductor contract manufacturing business, otherwise known as foundry — are each revising their advanced process road maps, taking different strategic approaches to claim the throne.

Intel has scaled back production plans for its 1.8-nanometer node, originally scheduled for mass production later this year, and is shifting focus to the development of its 1.4-nanometer process. Samsung Electronics, on the other hand, has postponed its own 1.4-nanometer plans and is concentrating instead on its 2-nanometer process, which is set to enter production soon.

In chip manufacturing, “nanometer” refers to the width of a transistor gate — the smaller the number, the more advanced the semiconductor, offering higher performance and energy efficiency. Foundry competitiveness depends on how reliably firms can manufacture such tiny chips, making process development road maps a key tool for attracting future clients. Intel and Samsung go separate ways

Intel CEO Lip-Bu Tan is exploring a significant pivot in the company’s foundry strategy, Reuters reported on Wednesday, citing multiple unnamed sources. According to the report, Intel has halted customer outreach for its 18A process — equivalent to the 1.8-nanometer node — and is instead prioritizing development of the next-generation 14A process.

When Intel reentered the foundry business in 2021, it drew industry attention with a bold road map that appeared to outpace competitors. While Samsung and TSMC announced plans to begin 2-nanometer production by 2025, Intel set its sights on mass production of the 1.8-nanometer node and aimed to start 1.4-nanometer production in 2026 — a year ahead of Samsung and two years ahead of TSMC.

A flag bearing the logo of Samsung Electronics flutters at the company's office building in Seoul, South Korea, April 15, 2025. [REUTERS/YONHAP]

Intel's CEO Lip-Bu Tan speaks at the company's Annual Manufacturing Technology Conference in San Jose, California, U.S. April 29, 2025. [REUTERS/YONHAP]

As recently as March, Tan touted the strength of the 18A process at the Intel Vision conference, expressing confidence in its readiness for high-volume manufacturing.

However, Intel’s decision to revise its road map appears to reflect technical hurdles and a continued reliance on Intel’s own product lines as its main foundry clients. The company plans to produce its next-generation Panther Lake CPU using the 18A node by year-end, but has reportedly failed to secure substantial orders from external customers. Reuters noted that some in the industry believe the 18A process is technologically comparable to TSMC’s 3-nanometer process — and that even within Intel, concerns have emerged that 18A is losing appeal among potential clients. Samsung recalibrates, TSMC stays steady

Samsung Electronics, meanwhile, announced at its Safe Forum 2025 foundry partner event on Tuesday that it is pushing back mass production of its 1.4-nanometer node from 2027 to 2029. The company will instead focus on stabilizing and ramping up its 2-nanometer process, which is scheduled to begin mass production later this year. Samsung’s 2-nanometer yield rate — the proportion of chips that meet quality standards — has yet to reach the 70 percent threshold typically required for profitability.

A silicon wafer on display during the SEMICON Taiwan, at Nangang Exhibition Center in Taipei, Taiwan, on Sept. 4, 2024. SEMICON Taiwan is an annual event focused on the semiconductor industry, offering exhibitions and conferences. It's a key platform in Taiwan for professionals to showcase innovations, network, and discuss the latest trends and advancements in semiconductor technology. [EPA/YONHAP]

Given that Samsung’s own products have previously bypassed its foundry services, the company is under pressure to make its 2-nanometer process a success. The competitiveness of the Exynos chip — designed and produced in-house using the 2-nanometer process and expected to appear in some foldable phones later this year — will be a crucial test. Earlier this year, Samsung’s Galaxy S25 series featured only Qualcomm chips manufactured by TSMC.

“A major issue for Samsung’s foundry business has been its repeated push into next-generation nodes despite unstable processes, leading to poor yields and eroding client trust,” said an industry insider. “The decision to consolidate its current capabilities rather than push ahead prematurely may actually prove beneficial.”

In contrast, TSMC is gaining customer trust by sticking to its original road map. In April last year, the Taiwanese chipmaker surprised the market by adding a 1.6-nanometer node to its road map between the existing 2-nanometer and 1.4-nanometer nodes. At its latest shareholder meeting in June, TSMC reaffirmed plans to start mass production of the 1.6-nanometer node in the second half of next year, reinforcing its leadership in technology and customer confidence.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY LEE GA-RAM [yoon.soyeon@joongang.co.kr]