Global technology firms are increasingly shifting toward Samsung Foundry as Taiwan Semiconductor Manufacturing Company (TSMC) struggles to meet skyrocketing demand for advanced chips driven by artificial intelligence expansion. TSMC Chairman C.C. Wei recently admitted that its advanced-node capacity is “about three times short” of major customer requirements, highlighting the strain on the world’s most critical chip supplier.
Apple and NVIDIA currently dominate TSMC’s available 2nm production lines, with Apple reportedly securing more than half of the firm’s 2026 output for its iPhone 18 A20 and MacBook M6 processors. The tight capacity has pushed wafer prices to nearly $30,000, leaving little room for other clients seeking cutting-edge chips.
Samsung is emerging as a key alternative. The company’s SF2 2nm Gate-All-Around process has caught the attention of major players, including Meta for its MTIA AI accelerators and AMD for its upcoming EPYC Venice CPUs and MI450 AI chips. Qualcomm has also resumed testing its Snapdragon 8 Elite Gen 5 processor on Samsung’s 2nm line after earlier yield concerns.
Recent contracts further signal Samsung’s rebound in advanced nodes. Tesla has committed to a $16.5 billion deal for AI chip production split between its Texas and TSMC sites, while Apple is working with Samsung on next-generation image sensors. With TSMC’s 3nm and 5nm capacities booked through 2026, Samsung’s more competitive wafer prices between $22,000 and $25,000 are fueling a broader industry shift to diversify chip supply chains.
