Intel invests heavily to compete in the 2nm chip market

In the race for next-generation 2-nanometer (nm) chips, Intel has committed substantial resources to revolutionize its operations as a foundry leader. Over the past four years, the company has invested more than $90 billion in capital expenditures designed to bolster its foundry capabilities and compete with industry giants like TSMC and Samsung. This push comes as chip manufacturers strive for smaller process nodes that can integrate more transistors, enhancing performance, improving energy efficiency, and facilitating advanced designs essential for AI, smartphones, and other high-performance applications. Currently, Intel's 18A process, based on 1.8nm technology, is in risk production, but the competitive landscape is rapidly evolving. TSMC, the dominant player in the foundry sector, holds a significant market share and is expected to retain leadership in the 2nm generation with its newest technologies. TSMC's 2nm process will integrate gate-all-around (GAA) transistor architecture, promising enhanced performance and energy savings, while the company's production capabilities are exemplified by current 60% yield rates. Major clients, including Apple and AMD, have already committed to TSMC's 2nm technology, which may achieve full capacity by late 2025. Meanwhile, Intel anticipates that its 18A process will offer improved performance and power efficiency compared to TSMC’s offerings. However, TSMC's scale and established customer base may complicate things for Intel, which has also faced significant stock volatility in recent years, performing poorly on the stock market with returns ranging from +95% in 2023 to -60% in 2024. Overall, Intel's ambitious plan to close the technology gap with TSMC and assert itself in the chip manufacturing race reflects the intense competitive pressures in this rapidly advancing field.