Samsung Breaks TSMC’s Monopoly: Green Light for Foundry Rebound

A series of positive news for Samsung Semiconductor Joint supplier-ship with TSMC
Increasing the potential to obtain big tech orders

The fact that Samsung Electronics Foundry obtained the order for AI5, Tesla’s next-generation autonomous driving AI semiconductor, is a signifi cant deal that goes beyond simply securing volume from Taiwan’s TSMC. This is seen as an important opportunity to reduce the quarterly losses of its foundry business, which currently generates KRW 2 trillion (approximately USD 1.6 billion), and to att ract new customers.
Since TSMC plans to produce A15 starting in 2026, Samsung will be able to mass-produce it much sooner, contributing to its foundry performance. Furthermore, since it is likely to be produced at the Taylor fab in the factory in Texas, USA, which will be completed next year, it will increase utilization at the Taylor fab and enhance the fi nal quality of next-generation A16, thereby killing two birds with one stone.
It is more meaningful that Samsung Electronics has now assumed the role of dual vendor (multiple supplier ) in producing advanced chips alongside TSMC. It is considered ideal if customers can maintain multiple suppliers to increase their bargaining power in contract manufacturing. However, big tech customers that outsource production to
TSMC have maintained a sole vendor (single vendor ) system, entrusting all production to TSMC to produce their semiconductors using the most advanced processes.

However, for as long as big tech companies maintain the sole vendor system, it is inevitable that Samsung Electronics will be at a signifi cant disadvantage in the competition for orders.
Nonetheless, as Tesla leads the way in diversifying advanced chip manufacturing between TSMC and Samsung Electronics, other big tech companies may seriously consider dual vendor systems. Indeed, Qualcomm is reportedly considering producing the Snapdragon 8 Elite, which will be mounted in the Galaxy S26, also at the Samsung Foundry.
According to foreign media reports, TSMC plans to increase prices for advanced nodes below 5nm by 5~10%. Prices for the most recent 2nm process are expected to rise by at least 50%.

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