Samsung Slashes 2nm Wafer Prices to Challenge TSMC

Samsung has fired a major shot in the global chipmaking battle by slashing the cost of its upcoming 2 nm wafers, a move that could shake up the delicate balance of power between the Korean giant and long-time market leader TSMC. For years, Samsung Foundry has worked to close the gap in advanced semiconductor production, but persistent struggles with manufacturing yields and client trust have kept it trailing behind. Now, with pricing that undercuts its rival by a wide margin, Samsung is signaling it’s ready to compete more aggressively than ever before.

The new pricing strategy sets Samsung’s 2 nm wafers at approximately $20,000 each, a staggering $10,000 less than TSMC’s estimated $30,000 price point.

For potential customers, that represents not just incremental savings but millions of dollars in reduced costs at scale. In a business where every dollar counts and wafer pricing directly affects profitability, this aggressive discounting could force design houses and tech giants to reconsider their long-standing loyalty to TSMC.

Samsung’s decision comes after years of setbacks. Its foundry business has suffered from low yield rates, which measure how many usable chips can be produced per wafer. Low yields translate into higher effective costs and frustrated customers. The most visible consequence was the Galaxy S25 series, where Samsung abandoned its own Exynos 2500 chip due to weak 3 nm production results, opting instead to rely on Qualcomm’s Snapdragon processors. Such public missteps fed into the narrative that TSMC remained the only reliable option at the bleeding edge of manufacturing.

Yet 2024 marked a turning point. Samsung finally stabilized its 3 nm process and began to show steady improvements in 2 nm yield rates. While the company still isn’t at the industry’s highest production efficiency, the progress has been substantial enough to give its leadership the confidence to introduce its next-generation Exynos 2600 processor, built on the 2 nm node and planned for the Galaxy S26 lineup. Early benchmark results hint at a competitive chip that could help Samsung prove the real-world viability of its technology.

The aggressive wafer pricing is more than a marketing stunt – it’s a calculated attempt to bring customers on board before Samsung’s yields reach perfection. For chip designers weighing their options, the discount may offset some of the risks associated with slightly lower yield rates. In effect, Samsung is betting that companies will accept a degree of uncertainty if the financial upside is too large to ignore.

For TSMC, the immediate threat remains modest. The Taiwanese manufacturer enjoys a reputation for reliability and dominates with a client base that includes Apple, AMD, and Nvidia – companies that are unlikely to switch partners overnight. However, Samsung’s move raises the pressure. If yields continue to improve and the Exynos 2600 debuts successfully, Samsung will have a working showcase of its capabilities, something investors and potential clients pay close attention to. In that scenario, TSMC may be forced to respond with its own price adjustments, a rare event in an industry where leading-edge processes typically command premium rates.

What’s clear is that Samsung is no longer content to play catch-up quietly. By combining visible technological progress with aggressive pricing, it is openly challenging TSMC’s dominance. For customers, this could usher in a more competitive era of chipmaking, where cost, performance, and innovation converge in unpredictable ways.