Samsung Electronics Co., a leading global memory chipmaker, has secured two new clients for its latest 2-nanometer chip manufacturing technology, winning orders from two Chinese cryptocurrency mining companies.
The move is expected to strengthen the South Korean tech giant’s efforts to regain ground on foundry, or contract chipmaking, leader Taiwan Semiconductor Manufacturing Company Ltd., better known as TSMC.
Samsung Foundry, the Korean firm’s contract chipmaking unit, has agreed to produce 2 nm ASIC chips for MicroBT and Canaan, the world’s second- and third-largest makers of bitcoin-mining rigs, people familiar with the matter said on Monday.
The chips serve as the core processing units in high-performance machines used for crypto mining.
Beijing-based Bitmain Technologies, the sector’s dominant player, sources its top-end chips from TSMC.
ADDITION OF CLIENT BASE TO SAMSUNG SYSTEM LSI, TESLA
The wins add to a string of recent production deals for Samsung’s nascent 2 nm platform, following orders for the Exynos 2600 smartphone processor designed by Samsung’s System LSI division and Tesla’s next-generation “AI6” accelerator chip.
Analysts said the pipeline suggests Samsung’s manufacturing technology, long perceived as lagging behind TSMC’s, is regaining credibility among global chip developers.
One person close to the negotiations said MicroBT and Canaan turned to Samsung partly because TSMC’s advanced-node capacity remained “extremely tight,” with limited room to accommodate new ASIC projects.
Samsung has already begun volume production for MicroBT, while Canaan’s first wafers are set to enter the line early next year, with shipments targeted for the second half of 2026, according to sources.
The chips will be manufactured at Samsung’s S3 fab in Hwaseong, south of Seoul.
$480 MILLION PER YEAR DEAL
Output for the two Chinese companies is expected to reach about 2,000 wafers a month on a 300-millimeter basis – about 10% of Samsung’s current 2 nm production capacity at its S3 fab in Hwaseong, south of Seoul.
With 2 nm wafer pricing estimated at close to $20,000 apiece, the deals could yield annual revenue of some $480 million, equivalent to about 4% of Samsung Foundry’s 2024 sales, sources said.
While modest in scale, the contracts represent an important milestone as Samsung broadens its customer roster for the leading-edge process node.
The company began commercial 2 nm production earlier this year and is trying to lure clients from TSMC with more aggressive pricing and faster ramp-up schedules.
TSMC’s 2 nm partners include Apple, Qualcomm, AMD and MediaTek.
SAMSUNG AIMS TO EXPAND US FOOTPRINT
Samsung is working to expand its US manufacturing footprint.
The company plans to accelerate investment in a 2 nm line at its Taylor, Texas complex, aiming to start installing equipment in the second quarter of next year.
Once completed in 2027, the line is expected to support a monthly output of more than 15,000 wafers.
The latest orders are unlikely to significantly narrow the more than 60-percentage-point market-share gap between Samsung and TSMC.
Analysts, however, say that a steady accumulation of 2 nm customers could help Samsung gradually rebuild momentum in the high-stakes foundry race.
