Samsung, SK Hynix Moves Heighten TSMC Competition in 4nm Chips and HBM Capacity
TSM•Samsung Foundry is negotiating 4nm and 2nm automotive SoC deals with BYD and other Chinese OEMs, challenging TSMC's monopoly in advanced driving chips. SK Hynix plans to double wafer capacity by 2031 to meet AI-driven HBM demand from Nvidia, increasing competitive pressure on TSMC's foundry and memory segments.
1. Samsung Foundry Negotiations with Chinese Automakers
Samsung Electronics’ foundry unit is in technical discussions with BYD and other major Chinese automakers to manufacture autonomous-driving SoCs using its advanced 4nm and emerging 2nm processes. This would expand Samsung’s customer base beyond Nio and position it as the only realistic alternative to TSMC for cutting-edge automotive chips.
2. Implications for TSMC's Automotive Chip Business
TSMC currently dominates the production of state-of-the-art automotive SoCs, with stable yields on its 4nm node and plans for more advanced process nodes. Samsung’s entry into this segment could force TSMC to accelerate roadmap deliveries or offer more competitive pricing to retain key OEM contracts.
3. SK Hynix's Wafer Capacity Expansion Plan
SK Hynix aims to double its wafer fabrication capacity over the next five years to address persistent chip shortages and fulfill high-bandwidth memory demand. The company targets Nvidia’s AI systems, leveraging its 58% share in the HBM market and recent $1 trillion market valuation milestone.
4. Competitive Impact on TSMC's Foundry and Memory Segments
Combined, these moves by Samsung and SK Hynix intensify pressure on TSMC’s foundry and memory segments, potentially eroding its near-monopoly in advanced nodes and premium memory supply. TSMC may need to bolster capacity or pursue strategic partnerships to maintain leadership in both chip and memory manufacturing.
