Samsung Sees Opportunity as TSMC 2nm Capacity Fills Up

After securing a $16.5 billion contract with Tesla, Samsung is trying to attract other big clients for its cutting-edge 2nm process. The company now sees a new opportunity as rival TSMC runs into capacity limits for its most advanced semiconductor production. This is mainly because demand for high-performance chips in the tech industry has surged rapidly.

Samsung could benefit from a supply crunch at rival TSMC

According to a report from The Chosun Daily, TSMC’s 2nm production capacity is already fully booked through 2028. Major technology firms such as Apple, Nvidia, AMD, and Qualcomm have locked orders as competition in the AI chip space intensifies. This has left little room for new clients at TSMC, despite its steps to expand production lines globally, including in the US and Japan.

Meanwhile, TSMC Arizona Fab 4, which will focus on advanced sub-2nm technologies, is also already booked. The company could kick off mass production in 2030. This shows the growing supply crunch for advanced nodes needed to support expanding AI infrastructure.

The situation is creating a solid opportunity for Samsung, the world’s second-largest foundry. In the fourth quarter of 2025, TSMC maintained the lead in the global foundry market with 72% share. Samsung Foundry ranked second with a 7% share, well behind the market leader.

“For Samsung to move beyond being an alternative to TSMC and become a preferred choice, it must ultimately prove its technological capabilities,” said a semiconductor industry official. If the Korean firm secures more orders for its 2nm node, it will be able to solidify its standing in the global foundry market.

Samsung’s 2nm node has reportedly achieved yield rates of over 60%, bringing it nearer to TSMC (60-70% range). This solid yield rate could help the Korean Foundry lower production costs and improve reliability. As such, it could be able to attract major clients seeking alternatives in a supply-constrained market.