Samsung Foundry likely to pick up big orders as TSMC gets sold out until 2028

TSMC remains the foundry of choice for major semiconductor designers who need to get their 2nm chips made. The Taiwan-based company's order book continues to fill out years in advance, with a latest report suggesting that it's sold out of capacity until 2028.

This could work out well for Samsung Foundry which has invested billions in bringing its 2nm manufacturing capabilities up to speed.

TSMC's 2nm order book has reportedly been filled through 2028 by major tech companies like NVIDIA, Apple, AMD, and Qualcomm. They've all secured capacity in advance to ensure that they can continue to take advantage of TSMC's 2nm process.

While TSMC continues to expand its production lines, it won't be able to get the new facilities built in time to meet near-term demand. Meanwhile, Samsung Foundry has been actively trying to court these major companies as its 2nm process technology shows strength that previously eluded the company's 3nm technology.

Samsung Foundry has a lot of catching up to do with TSMC which holds a dominant 72% share in the global foundry market. Samsung has the only other foundry capable of making 2nm chips so customers who don't find capacity at TSMC only have one alternative, and that's in South Korea.

Yield rates for Samsung's 2nm process are said to be satisfactory. Samsung will need to do more in this regard to convince customers that it can deliver stable yield rates for them to shift some of their orders over to its foundry.