Samsung Aims to Make the World’s Most Advanced Chips in 5 Years

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Samsung plans to make the world’s most advanced chips in 5 years, as it plays catch up with TSMC and Intel in the semiconductor market. For customers, however, speed will not matter as long as they get their products on time, according to industry officials.

Image Source- Caixin Global

As competition between the South Korean electronics behemoth and the largest chip manufacturer in the world, TSMC, heats up, Samsung announced Tuesday that it plans to produce some of the most cutting-edge semiconductors in the world in five years.

The business outlined a manufacturing roadmap and stated that it will start producing chips using a 2 nanometer process in 2025 and a 1.4 nanometer process in 2027.

The size of each transistor on a chip is indicated by the nanometer value. More transistors may be crammed onto a single semiconductor as their size decreases. Usually, a reduction in nanoscale size results in devices that are more potent and effective.
The CPU of Apple’s most recent iPhone 14 Pro and Pro Max versions is a 4 nm chip for comparison.
Earlier this year, Samsung started making circuits with a 3 nanometer pitch.
On Tuesday, Samsung stock in South Korea nearly closed 4% higher.

The South Korean company, famed for consumer electronics and memory chips, is attempting to catch up to Taiwan’s TSMC by expanding its contract chipmaking, or foundry, business.

According to TrendForce, Samsung is the world’s second-largest foundry in terms of revenue, with a 17.3% market share to TSMC’s 52.9%.

For its part, TSMC anticipates starting the manufacture of 3nm chips this year and 2nm chips in 2025. The business hasn’t formally said, though, that it intends to mass build 1.4nm devices.

According to SK Kim, an analyst at Daiwa Capital Markets, “SEC (Samsung Electronics) guided for its long-term foundry strategy for the first time, and I think it is more aggressive than TSMC and market expectations.”

Samsung’s ambitious aspirations coincide with a decrease in semiconductor demand and a worldwide economic downturn. The Semiconductor Industry Association, located in the United States, said that global chip industry sales decreased 3.4% in August compared to July.

In spite of this, Samsung declared that it will increase its capacity for manufacturing the most cutting-edge semiconductors by more than three times by 2027 compared to this year, demonstrating its confidence in future demand.

These include its American factories. In addition to having a site near Austin, Texas, Samsung is also constructing a $17 billion complex there in Taylor.

In order to lessen its reliance on the manufacturing centres of Taiwan and South Korea, Washington has been trying to persuade chipmakers like Samsung and TSMC to establish plants in the United States.

Samsung has focused heavily on developing cutting-edge chips, but the company also predicted that by 2027, semiconductors for high-performance computing, automotive, and 5G applications will account for more than 50% of its foundry business. Typically, they are less sophisticated chips.

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