Samsung goals to triple manufacturing for many superior chips by 2027

Samsung mentioned Tuesday it goals to make a few of the most superior semiconductors on this planet in 5 years’ time, because the race between the South Korean electronics large and the world’s largest chip maker TSMC heats up.

The corporate laid out a roadmap for its chip manufacturing plans, and mentioned it’ll start making chips with a 2 nanometer course of in 2025 and 1.4 nanometer course of in 2027.

The nanometer determine refers back to the measurement of every particular person transistor on a chip. The smaller the transistor, the extra of them could be packed onto a single semiconductor. Usually, a discount in nanometer measurement can yield extra highly effective and environment friendly chips.

For comparability, the processor in Apple’s newest iPhone 14 Professional and Professional Max fashions is a 4 nanometer chip.

Samsung started producing 3 nanometer chips earlier this 12 months.

Shares of Samsung in South Korea closed almost 4% increased on Tuesday.

The South Korean agency, recognized for shopper electronics and reminiscence chips, is trying to ramp up its contract chipmaking, or foundry enterprise, in a bid to meet up with Taiwan’s TSMC.

Samsung is the second-biggest foundry globally by income, with a 17.3% market share in comparison with 52.9% for TSMC, in keeping with TrendForce.

For its half, TSMC expects to start 3nm chip manufacturing this 12 months with manufacturing of 2nm set to start in 2025. Nonetheless, the corporate has not formally introduced plans to mass produce 1.4nm chips.

Samsung’s formidable plans come amid world financial headwinds and indicators of a slowdown in semiconductor demand. World chip business gross sales fell 3.4% in August in comparison with July, in keeping with the U.S.-based Semiconductor Trade Affiliation.

Regardless of this, Samsung mentioned it plans to broaden its manufacturing capability for probably the most superior chips by greater than thrice by 2027 in comparison with this 12 months, highlighting its bullishness on future demand.

These embody its factories within the U.S. Samsung has a plant in Austin, Texas, and is at present constructing a $17 billion facility in Taylor in the identical state.

Washington has been trying to appeal to chipmakers like Samsung and TSMC to arrange factories within the U.S. in order that it may scale back reliance on the manufacturing hubs of Taiwan and South Korea.

Whereas Samsung has put a giant deal with innovative chips, the corporate additionally mentioned semiconductors for high-performance computing, automotive and 5G makes use of will make up greater than 50% of its foundry enterprise by 2027. These are often much less superior chips.