TSMC scales 2nm production capacity; Samsung inks reported $200B deal with Broadcom for AI infrastructure custom silicon

Samsung has signed a memorandum of understanding with Broadcom to collaborate on memory and foundry technologies, signaling a shift in the competitive dynamics of advanced semiconductor manufacturing. The partnership targets the ASIC market, with Broadcom planning to integrate Samsung's HBM4 memory into its AI accelerators. Samsung will simultaneously ramp production of its next-generation HBM4E memory to support the collaboration.

Samsung's vertically integrated approach—combining its 2nm process node with 1c DRAM technology—enables co-optimization of chip design, power delivery, and thermal performance. This integration gives Samsung a structural advantage over TSMC and is expected to accelerate Broadcom's chip design and development cycles.

TSMC's announced foundry price increases have created an opening for Samsung's foundry business. TSMC informed major customers of planned price increases up to 10% starting in 2027, with its 2nm process expected to exceed $33,000 per wafer, up from approximately $30,000 currently. Samsung's 2nm order pipeline has grown increasingly visible as a result. The company has secured production orders for Tesla's next-generation AI6 chips and recently signed an MOU with Anthropic to design, manufacture, and package 2nm-based AI chips.

The Samsung–Broadcom partnership is increasingly viewed as a potential alternative in the global advanced foundry supply chain. Industry observers note that its ultimate success will depend on customer qualification, 2nm yields, advanced packaging mass-production capabilities, and final customer orders.

TSMC is concurrently accelerating its own 2nm capacity expansion. Demand for the company's 2nm process remains strong, with mass production progressing across five Taiwan fabs. The Baoshan site reached monthly capacity of 20,000 wafers in May 2026 and continues ramping. New capacity coming online in Kaohsiung will further expand the 2nm family's production footprint on a month-by-month basis.

The 2nm family will expand to include N2P, offering additional improvements in performance and power efficiency, with mass production scheduled for the second half of 2026. TSMC aims to increase first-year 2nm wafer output by 45% compared with first-year 3nm production in 2023, and targets a 70% compound annual growth rate in 2nm capacity between 2026 and 2028.

In the second quarter, 2nm accounted for 3% of TSMC's wafer revenue, while 3nm, 5nm, and 7nm contributed 30%, 33%, and 11%, respectively. Advanced processes—defined as 7nm and below—represented 77% of total wafer revenue during the period.