Samsung Could Beat Apple to the World’s First 2nm Smartphone Chip

For years, Apple has proudly stood at the front of the semiconductor race, with each new iPhone debuting a chip built on the smallest, most advanced process technology available. But that long-standing streak may be coming to an end. Reports suggest that Samsung, once considered a struggling contender in chip manufacturing, is preparing to overtake Apple’s technological lead as soon as next year – potentially making the first smartphone powered by a 2-nanometer (nm) application processor (AP).

To understand why this is significant, let’s rewind a bit.

In 2022, Samsung Foundry faced major yield issues – only about 35% of the chips it produced for Qualcomm’s Snapdragon 8 Gen 1 passed quality checks. In semiconductor terms, that’s disastrous. A low yield means higher costs, since customers pay for every wafer regardless of how many usable chips emerge. Qualcomm, frustrated by the inefficiency, shifted its flagship chip production to Taiwan’s TSMC, which boasted yields of around 70% at the time. TSMC’s consistency and efficiency soon made it the go-to partner for premium chips, leaving Samsung in the shadow of its Taiwanese rival.

But Samsung didn’t stay idle. The company invested heavily in its Gate-All-Around (GAA) transistor technology, a major leap beyond the traditional FinFET design. Unlike FinFET transistors, which cover three sides of the current channel, GAA transistors wrap around all four sides, cutting power leakage and improving performance efficiency. This innovation is central to Samsung’s 2nm process, potentially allowing it to leapfrog TSMC’s dominance.

Meanwhile, Qualcomm’s Snapdragon 8 Elite Gen 5 – the next evolution of its flagship chip – is expected to exist in multiple versions. TSMC will handle a 3nm variant, but Samsung Foundry may produce a special 2nm version, rumored to be branded as “Snapdragon 8 Elite Gen 5 for Galaxy.” If true, this would not only represent a symbolic comeback for Samsung’s foundry division but also a landmark moment in mobile technology. The device expected to debut with this chip? The Galaxy Z Flip 8 – Samsung’s stylish clamshell foldable that continues to define the modern flip-phone category.

That’s a twist in itself. Originally, the rumor mill suggested the Galaxy S26 lineup would premiere the 2nm chip. However, the latest insider reports indicate the Z Flip 8 will take the honor, while the S26 Ultra might continue using TSMC’s 3nm-based Snapdragon 8 Elite Gen 5. Even so, this would break Apple’s long tradition of being first to adopt the most advanced process node. From the 7nm A12 Bionic in the iPhone XS (2018) to the 5nm A14 Bionic in the iPhone 12 (2020) and the 3nm A17 Pro in the iPhone 15 Pro (2023), Apple’s chip team has consistently led the way – until now.

Samsung’s resurrection as a foundry powerhouse didn’t come easily. Earlier, the Exynos 2500 – built on Samsung’s 3nm process – was slated for use in the Galaxy S25 and S25+ in select regions. However, persistent yield challenges forced Samsung to scrap those plans and adopt TSMC’s Snapdragon chips across all S25 variants. That decision freed up time for Samsung Foundry to refine its 3nm process, allowing it to stabilize production for the Exynos 2500 in time to power this year’s Galaxy Z Flip 7.

Encouraged by those improvements, Samsung has already delivered Qualcomm early samples of its 2nm-built Snapdragon 8 Elite Gen 5. Industry insiders say yields have reached around 30% – not perfect, but promising for an emerging technology node. If production rates continue to climb, Samsung could finally present a genuine alternative to TSMC, giving chipmakers and smartphone OEMs another viable high-end fabrication partner.

The implications go far beyond a single product launch. If Samsung achieves stable 2nm production before TSMC does, it could become the first company in the world to put a 2nm chip inside a shipping smartphone. That would not only mark a historic turnaround for its foundry division but also strengthen global chip supply chain resilience. With growing geopolitical concerns around Taiwan – where most of TSMC’s facilities are located – having another capable manufacturer outside that region would be a major win for the tech industry at large.

And while Apple is working with TSMC on its own 2nm A18 Bionic chip for next year’s iPhones, timing could be tight. If Samsung’s schedule holds, the Galaxy Z Flip 8 could hit the market months before the iPhone 16 Pro, claiming the honor of the world’s first 2nm-powered smartphone. Whether the performance difference will be noticeable to average users is another story – but the bragging rights alone could shift perceptions of Samsung’s technological credibility.

Of course, the situation remains fluid. Both Samsung Foundry and TSMC are racing against time to perfect their 2nm yields and mass-production capacity. Yet, the momentum seems to be leaning in Samsung’s favor for the first time in years. If it manages to deliver the Snapdragon 8 Elite Gen 5 “for Galaxy” at competitive yields, Samsung could reclaim a slice of the foundry market it lost to TSMC – and perhaps, finally, end Apple’s reign as the pioneer of cutting-edge silicon in smartphones.

In a world where chip technology underpins everything from AI to autonomous cars, having two viable players at the bleeding edge of semiconductor fabrication is good news for everyone – manufacturers, consumers, and the global economy alike. The race for 2nm supremacy has officially begun, and for once, Samsung seems poised to cross the finish line first.