TSMC has dominated the advanced semiconductor market for years, holding an effective monopoly on cutting-edge silicon production. The rise of artificial intelligence has exposed the vulnerability of this concentration, as surging demand for computing power has created dangerous supply chain bottlenecks.

Tech giants are now scrambling for alternatives. The dependence on a single supplier has become untenable, forcing companies like Apple, NVIDIA, and Qualcomm to secure secondary sources. One American contender is emerging as the clear frontrunner in this race, whilst its rivals struggle to gain traction.

Samsung Foundry Seizes Advantage as US Clients Look Beyond TSMC

Industry reports indicate Samsung Foundry is rapidly becoming the preferred secondary option for major fabless customers seeking alternatives to TSMC. The Korean chipmaker is capitalising on a window of opportunity that has opened as supply chain pressures intensify.

The debate over TSMC's 'second source' was largely theoretical until recently. TSMC's efficiency kept most companies from seeking alternatives, but AI's explosive growth has rewritten the calculus. Giants across the industry now recognise that operational continuity demands redundancy.

Deutsche Bank analysis suggests Samsung is securing these contracts whilst competitors falter. The company's established relationships with demanding clients like NVIDIA and Apple have positioned it to capture dual-sourcing agreements as the market restructures.

Intel Foundry Faces Execution Challenges Whilst Samsung Builds Trust

The United States has become the primary battleground for these new orders, but the contest appears one-sided. Industry sources claim Samsung's Taylor facility in Texas is gaining substantial traction as the logical hub for foundry customers seeking TSMC alternatives.

Intel Foundry is struggling to win over these same clients due to persistent execution challenges. Confidence drives decisions in the semiconductor industry, and Samsung currently holds a decisive advantage.

Fabless manufacturers, wary of gambling their product roadmaps on unproven capabilities, are selecting partners with demonstrated delivery records. Whilst Intel works to establish credibility, Samsung's operational track record is translating directly into contract wins.

2nm Process at Taylor Facility Becomes New Battleground

The technical centrepiece of this competition is the cutting-edge 2-nanometre process. Major players, including Qualcomm and AM,D are evaluating Samsung's Taylor plant, with particular interest in the SF2 technology under development there.

Samsung has responded by prioritising the Taylor site, shifting production lines to this advanced node. The company is investing heavily in advanced packaging capabilities, essential infrastructure for modern AI accelerators.

Fabless manufacturers require viable alternatives to TSMC's N3 process. Intel's 18A and Samsung's SF2 represent the only credible options currently available. Whilst both offer competitive specifications, market preference for Samsung indicates that technological capability alone proves insufficient without operational reliability.

Dual-Sourcing Race Accelerates as Orders Remain Uncertain

Strong client interest has yet to translate into confirmed production orders. The progression from preliminary discussions to mass production contracts represents the critical next phase for both Samsung and Intel.

Both manufacturers are competing aggressively to secure commitments from customers adopting dual-sourcing strategies. Current momentum suggests the Taylor facility could establish itself as a cornerstone of American semiconductor manufacturing capacity. The outcome of this foundry competition will shape the technology industry's infrastructure for the coming decade as AI deployment demands greater supply chain resilience.

Originally published on IBTimes UK