Samsung Foundry, a leading semiconductor company, has aggressively reduced prices to attract customers for its advanced 2nm chip manufacturing process. This move aims to challenge the strong position of its Taiwanese rival, TSMC, in the industry.
Samsung launches chip market offensive
TSMC, a leader in advanced chip technologies, is gaining major customers such as Nvidia and AMD as it transitions to mass production on its 2nm process. Amidst this competition, Samsung Foundry is struggling to find customers at the 2nm node.
According to reports, Samsung is offering discounts of up to 33% to attract customers from TSMC. Samsung has reportedly lowered its 2nm wafer price to $20,000, while TSMC is reportedly pricing the same process at approximately $30,000 per wafer.
Chip manufacturing is known for requiring significant investment. Samsung has established multi-billion dollar advanced factories in both South Korea and the US. However, the lack of orders forces the company to take radical steps to ensure a return on its investments.
Such reductions will significantly hurt Samsung’s profit margin. However, this strategy is more logical for the company than leaving its production capacity completely idle. As customers come in, confidence in Samsung’s 2nm process will increase and a steady source of revenue will be secured.
Things have also been looking up for Samsung Foundry recently. The company has signed a major $16.5 billion deal to produce Tesla’s next-generation AI chips. What are your thoughts on this? Share your thoughts in the comments section below.
