Jenith
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The Taiwan Semiconductor Manufacturing Co. has emerged as the undisputed leader in 2nm advanced chipmaking. It has scooped up some of the biggest clients, the likes of NVIDIA, AMD, and others, while Samsung's foundry struggles to win clients for its under utilized 2nm capacity.
It has typically relied on competing aggressively on price to drive customers away from TSMC. The company may have settled on this strategy for the node, as reports suggest it's offering discounts of up to 33% compared to TSMC.
According to reports, Samsung has decided to cut its 2nm wafer pricing down to $20,000, a 33% discount compared to TSMC's expected $30,000 per wafer price.
Chipmaking is a highly capital intensive endeavor. Samsung has invested billions of dollars in setting up cutting-edge advanced factories both in South Korea and the United States. However, with production lines sitting empty due to a lack of orders, the company has to take some drastic steps to ensure a return on its investment.
A significant discount would likely dent its margins significantly, but it's certainly better than keeping those lines empty. Once clients start rolling in, it would not only increase confidence in the foundry's 2nm process but also provide the company with a solid revenue stream.
Things have started to turn around for Samsung's foundry. The company recently inked a massive $16.5 billion deal with Tesla to manufacture its next-generation AI chip. The deal could eventually led to other manufacturing opportunities, with chips for Elon Musk's xAI being a likely candidate.
The post Samsung slashes 2nm prices by 33% to steal customers away from TSMC appeared first on imeisource.
It has typically relied on competing aggressively on price to drive customers away from TSMC. The company may have settled on this strategy for the node, as reports suggest it's offering discounts of up to 33% compared to TSMC.
Discounts may be necessary to drive up business
According to reports, Samsung has decided to cut its 2nm wafer pricing down to $20,000, a 33% discount compared to TSMC's expected $30,000 per wafer price.
Chipmaking is a highly capital intensive endeavor. Samsung has invested billions of dollars in setting up cutting-edge advanced factories both in South Korea and the United States. However, with production lines sitting empty due to a lack of orders, the company has to take some drastic steps to ensure a return on its investment.
A significant discount would likely dent its margins significantly, but it's certainly better than keeping those lines empty. Once clients start rolling in, it would not only increase confidence in the foundry's 2nm process but also provide the company with a solid revenue stream.
Things have started to turn around for Samsung's foundry. The company recently inked a massive $16.5 billion deal with Tesla to manufacture its next-generation AI chip. The deal could eventually led to other manufacturing opportunities, with chips for Elon Musk's xAI being a likely candidate.
The post Samsung slashes 2nm prices by 33% to steal customers away from TSMC appeared first on imeisource.