[News] Samsung Set to Benefit from TSMC’s ‘N-2’ Rule as AMD, Google Eye U.S. 2nm Production

As TSMC ramps up its U.S. and Japan expansions, all eyes are on the so-called “N-2” rule, which, according to the Central News Agency, could prevent the foundry giant from producing its most advanced nodes overseas. South Korean media outlet ebn reports that Samsung is set to capitalize on this gap, with Big Tech players including AMD and Google reportedly eyeing 2nm chip production at the company’s Taylor fab.

Ebn highlights that Samsung Electronics Executive Chairman Lee Jae-yong recently met with leading Big Tech figures, including Tesla CEO Elon Musk and AMD CEO Lisa Su, to explore opportunities in the company’s foundry business. Another industry source cited by the report added that Google’s TPU team visited Samsung’s Taylor fab to discuss potential production capacity and how much could feasibly be supplied.

According to Sedaily, construction of Samsung’s Taylor fab was 93.6% complete by the end of Q3, with full completion targeted for July 2026. By comparison, TSMC’s first Arizona fab, producing 4nm chips, went online in late 2024, while its second U.S. facility is slated to mass-produce 3nm chips by 2027. As ebn notes, since 2nm currently represents the cutting edge, TSMC’s 3nm output in 2027 is expected to lag by at least two generations under Taiwan’s N-2 principle.

Big Techs Queue for Samsung’s 2nm Chips

As ebn notes, rising geopolitical tensions and TSMC’s capacity constraints are fueling Big Tech’s growing interest in Samsung’s foundry. After Tesla selected the company in July to produce its AI6 processor under a $16.5 billion contract, Elon Musk revealed during the latest earnings call—as cited by CNBC and Investing.com—that both Samsung and TSMC will now share production of the AI5 chip.

Meanwhile, ebn highlights that Samsung Electronics is eyeing even bigger wins beyond Tesla, having already secured orders for its Exynos 2600, Apple image sensors, and custom mining ASICs for China’s MicroBT and Canaan. The report adds that Samsung is now running sample tests with AMD on its second-generation 2nm process (SF2P), while Google’s TPU team reportedly visited the Taylor fab to discuss potential production volumes, as the search engine leader is currently moving to sell TPUs—previously used exclusively for internal workloads—to external customers such as Meta.

With nearly half of TSMC’s 2nm capacity already locked in by Apple and NVIDIA reportedly set to outsource its 2nm production starting in 2027, ebn notes that signs of strain are already showing. As a result, rivals like Qualcomm, AMD, and Google are increasingly looking to Samsung to fill the gap in 2nm supply, the report adds.

Read more

• [News] Samsung Chairman Reportedly Meets Musk, Granting Tesla CEO Dedicated Workspace at Taylor Fab
• [News] Tesla AI5 Production Split Between Samsung, TSMC; Musk Cites Samsung’s “Advanced Equipment”

(Photo credit: Samsung)