Since the dawn of the 21st century, the global semiconductor foundry market has witnessed an impressive growth spurt alongside profound transformationsIn this highly specialized and technology-intensive domain, key players such as TSMC (Taiwan Semiconductor Manufacturing Company), Samsung, and Intel are not just in competition; they are at the forefront of technological advancement that has redefined industry standards and shaped the entire semiconductor landscape.

In today’s foundry market, only TSMC, Samsung, and Intel continue to push the envelope with cutting-edge processes of 7nm and belowThis race towards miniaturization underscores the industry's relentless pursuit of efficiency and performance enhancement.

Data from TrendForce, a global market research firm, highlights TSMC’s dominance: as of Q3 2024, TSMC held a remarkable 64.9% market share in the global foundry market, an increase from 62.3% in the previous quarterMeanwhile, Samsung trailed significantly with a market share of just 9.3%, a decline from 11.5%. Intel, in a difficult position, reported a sharp decline in its foundry sector, suffering a loss that reduced its ranking outside the top ten foundry companies.

TSMC's reliability has earned it favor for its 2nm technology, with several major clients turning their attention towards it.

According to TSMC's Q4 2024 financial results, its advanced processes contributed significantly to its revenue: 26% came from 3nm products, 34% from 5nm, and 14% from 7nm, culminating in a total of 74% revenue from advanced nodes

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This indicates that the lion's share of TSMC’s income is now firmly rooted in advanced manufacturing processes.

Beginning production of 7nm FinFET technology in 2018, TSMC rapidly followed with mass production of 5nm technology in 2020, unlocking innovations for products ranging from smartphones to high-performance computing solutionsBy 2022, TSMC had successfully launched its 3nm technology, which presently stands as the most advanced semiconductor logic process in the industryTSMC has ambitious plans for the future, set to begin production of its 2nm process in the second half of 2025, with development progressing well according to scheduleThis N2 technology employs nanosheet transistors to enhance overall performance while reducing power consumption.

As TSMC prepares to enter the 2nm realm, it has outlined its strategy for advancing technology below this threshold, dubbed the "A16" technologyUtilizing next-generation nanosheet transistors and a Super PowerRail architecture for optimized power delivery, this new technology aims to significantly boost computational capabilities while improving energy efficiency.

In 2024, TSMC served 522 clients, manufacturing 11,878 different products that feed into various market segments, including high-performance computing, smartphones, the Internet of Things, automotive electronics, and consumer electronicsTSMC and its subsidiaries now boast an annual production capacity that exceeds 16 million pieces of approximately 12-inch wafers.

Samsung looks to turn the tables with its 2nm process as it aims to increase its customer base and gather momentum.

In contrast to TSMC’s steady advancements, Samsung aims to capture potential clients through innovation, hoping to surpass TSMC in the process

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For instance, Samsung's 7nm node launched in 2018 utilized EUV (Extreme Ultraviolet Lithography), boasting a reduced total number of mask layers by approximately 20% compared to non-EUV processes, benefiting customers in terms of both time and cost savingsAdditionally, it claimed a 40% improvement in area efficiency and a potential reduction of power consumption by up to 50%.

Following TSMC’s implementation of EUV technology in its second generation of 7nm processes, Samsung turned its sights on next-generation 5nm technology, with production commencing in late 2019. Samsung reported that the optimized 5nm FinFET processes improved logic chip efficiency by 25%, reduced power consumption by 20%, and increased performance by 10%.

Continuing to innovate, Samsung then set its focus on the 3nm technology, boldly deploying GAA (Gate-All-Around) transistors with the announcement of mass production by late June 2022.

In terms of the upcoming 2nm process, recent reports from Korean media suggest that Samsung’s foundry has achieved better-than-expected initial yield rates in testing for its new 2nm technology (SF2). Particularly, the trial production yield for the new Exynos 2600 processor sits at around 30%. The SF2 is set to debut in the second half of 2025, featuring third-generation GAA technology, with expected performance enhancements of 12%, a 25% boost in efficiency, and a 5% reduction in chip size compared to its SF3 technologyIf yield improvement efforts remain stable, mass production could commence as soon as Q4 2025, putting it in direct competition with TSMC’s N2 technology.

Intel hopes to emerge from its challenges, with the Intel 18A process being critical to its future.

After Pat Gelsinger took over as Intel CEO in 2021, he introduced the IDM 2.0 strategy, aiming to leverage a “4 years, 5 nodes” roadmap to reclaim its semiconductor manufacturing leadership by 2025 while also appealing for conditional orders in the foundry market.

However, the ambitious "4 years, 5 nodes" initiative soon faced significant execution challenges, adversely impacting Intel's financial stability, ultimately leading to Gelsinger's retirement.

Intel 18A is expected to be a pivotal point in Intel’s advanced process development

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