Why Are AMD and Google Choosing Samsung for 2nm Chips?
Samsung Electronics is emerging as an attractive alternative for major tech companies seeking advanced chip manufacturing in the United States, as Taiwan's strict technology export rules restrict TSMC from deploying its most cutting-edge processes overseas. AMD and Google are reportedly in discussions to produce 2-nanometer chips at Samsung's Taylor, Texas facility, which is expected to become the only US-based fab capable of manufacturing at the leading edge by 2026.
Samsung Electronics Executive Chairman Lee Jae-yong recently met with AMD CEO Lisa Su and Tesla CEO Elon Musk during a US trip to discuss foundry cooperation, according to South Korean media outlets. The company is currently running sample tests of its second-generation 2nm process, known as SF2P, with AMD, while Google's Tensor Processing Unit team has visited the Taylor facility to discuss production volumes.
Taiwan's N-2 Rule Creates Opening
Taiwan's National Science and Technology Council reaffirmed this month that it maintains an "N-2 rule" requiring TSMC to keep overseas fabs at least two generations behind its most advanced domestic processes. Deputy Minister Lin Fa-cheng told lawmakers that if TSMC were producing 1.2nm or 1.4nm chips in Taiwan, only 1.6nm technology would be eligible for foreign production.
TSMC plans to produce 3nm chips at its Arizona facility in 2027, but with 2nm now representing the leading edge, the timeline will lag by design. The world's largest contract chipmaker currently holds approximately 71 percent of the global foundry market but faces severe capacity constraints, with CEO C.C. Wei stating in November that the company's advanced-node capacity falls "about three times short" of customer demand.
Samsung Positions Taylor Fab
Samsung's Taylor facility was 93.6 percent complete by the end of the third quarter, with full completion targeted for July 2026. The company expects to begin 2nm mass production at the site in 2026, making it the only US facility capable of producing the most advanced process technology available.
Industry sources estimate Samsung's 2nm yields have climbed to 55-60 percent, up from below 30 percent earlier this year. The company has already secured major customers including a $16.5 billion contract with Tesla signed in July to produce the automaker's next-generation AI6 chip.
Apple has reportedly locked in nearly half of TSMC's 2nm capacity for 2026, while Nvidia is expected to begin using 2nm in 2027, leaving other major customers like Qualcomm, AMD, and Google searching for additional capacity. Samsung has also won orders for its Exynos 2600 processor, Apple image sensors, and custom mining chips for Chinese firms MicroBT and Canaan.
