2nm chip manufacturing process war upgrades! Qualcomm (QCOM.US) returns to Samsung from single reliance on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, shifting towards dual foundry chain.

Some media sources cite statements from Cristiano Amon, CEO of QUALCOMM Incorporated, reporting that Qualcomm (QCOM.US) is likely to use Samsung Electronics' 2nm chip fabrication process to manufacture its next-generation mobile application processors. The media sources quoted Amon revealing in an interview that this smartphone and PC chip leader is in discussions with several foundries, including Samsung Electronics, for contract manufacturing using the cutting-edge 2nm chip fabrication process. Amon stated that Qualcomm has already completed the majority of the design work for the new generation core chips targeted towards PCs, smartphones, and even AI data centers, in order to achieve large-scale manufacturing and full commercialization in the near future. The report also states that this potential deal would mark Qualcomm's return to Samsung Electronics' cutting-edge chip fabrication process after relying almost entirely on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) for the most advanced chip manufacturing processes in recent years. On Monday, the stock price of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR surged by 6.9%, reaching a new all-time high and pushing the benchmark index of the Taiwan stock market above the 30,000 mark. This increase occurred after Wall Street financial giant Goldman Sachs Group, Inc. raised the 12-month target price of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR by 35% to 2330 New Taiwan Dollars, further strengthening market confidence in the long-term strong growth of demand for AI-related computing infrastructure. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR closed at 1675 New Taiwan Dollars, and its ADR stock in the US market has risen by 8% since the beginning of 2026, with a market value approaching 2 trillion US dollars. The high demand for AI GPUs since 2023, as well as the recent explosive demand for AI ASICs, are heavily reliant on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR is currently the world's largest contract chip manufacturer, and as the AI trend continues to sweep across the globe, its clients such as NVIDIA Corporation, AMD, and Broadcom Inc. continue to benefit from the surge in demand for AI chips, leading to a significant increase in chip manufacturing contracts with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. This has driven Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's performance to consistently exceed expectations since last year, providing strong support for its stock prices hitting new highs in recent years. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR and Intel Corporation's advanced chip manufacturing layout Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, known as the "king of global chip manufacturing," is also focusing on the 2nm and below advanced chip manufacturing capacity. The company clearly states on its official website that 2nm (N2) has started mass production as planned in the fourth quarter of 2025, emphasizing that N2 adopts the first generation nanosheet transistor (GAA/surrounding gate direction). Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's official website also indicates Fab 20 and Fab 22 as facilities for advanced 2nm chip production processes. Recent media reports further revealed that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's initial production focus on high-volume production at Kaohsiung Fab 22. Compared to the N3E process (equivalent to 3nm advanced process), N2 can achieve a performance increase of 10% to 15% with the same power consumption, a power consumption reduction of 25% to 30% with the same performance, and a transistor density increase of 15% to 20% (depending on chip architecture design). On the other hand, chip manufacturing giant Intel Corporation has skipped the 2nm integer process and is focusing on the 1.8nm level process (18A). Intel Corporation has stated that 18A has progressed from "process node commitment" to "end product release and volume production ramp-up," while 14A is still in the research and development phase. Intel Corporation showcased the Panther Lake (Core Ultra Series 3) based on the 18A process at CES 2026, confirming it as the "first batch product platform" for 18A. The key features of 18A, including GAA/RibbonFET + backside power delivery PowerVia, have been emphasized by the media and Intel Corporation official materials, but specific production yield indicators have not yet been disclosed. The return of Qualcomm to Samsung Electronics and its implications for Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR and Intel Corporation In the past few years, Qualcomm has "almost entirely relied on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR" for leading processes. If Qualcomm shifts some of the advanced node orders for its next generation mobile AP to Samsung's 2nm, it means that Qualcomm is implementing a dual supply chain strategy or diversifying on the "most core and largest mobile SoC" which could create slight pressure on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR in terms of market share and bargaining power. However, this move is not expected to significantly disrupt the fundamental growth prospects of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. Qualcomm's choice to manufacture mobile processors through Samsung can be seen as a "customer risk hedging and capacity/cost rebalancing" strategy, and not necessarily an indication of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's competitiveness in the 2nm arena. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR may still retain a significant portion of Qualcomm's share (such as core chips like AIPC and upcoming data center AI inference chips), and with strong demand for high-end AI/HPC chips, capacity utilization is usually not a concern. Additionally, Apple Inc. has already secured a portion of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's 2nm capacity, and NVIDIA Corporation and AMD are expected to acquire a large chunk of 2nm capacity, foreseeing a substantial expansion of advanced process chip manufacturing capacity by Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR in 2026. This move could be a significant blow to Intel Corporation's prospects in contract manufacturing. As Intel Corporation strives to attract external major clients and strengthen its chip manufacturing growth narrative with 18A and more advanced nodes, Qualcomm's prioritization of Samsung over Intel Corporation means that Intel Corporation may struggle to obtain substantial validation in the short term with regard to its "flagship client in high-end mobile SoC." The success of Intel Corporation heavily relies on the 18A and even more advanced 16A technologies. For a company like Intel Corporation, with a long period of sluggish performance, the mastery of leading, globally applicable, and extremely suitable for mass production advanced chip manufacturing technology is crucial. Intel Corporation has even invested in more costly High-NA EUV lithography machines - the first delivery of which was provided by ASML Holding NV ADR - showing their determination to create advanced chip manufacturing technology ahead of both Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR and Samsung Electronics in the 2nm and below arena.