Prasannkumar 
Samsung promises to triple its advanced chip production by 2027
Samsung promises to triple its advanced chip production by 2027
The No. 2 Foundry in the World sees strong demand to produce chips for high-performance computers and artificial Intelligence.
Samsung Electronics has announced plans for its chip contract manufacturing business to triple its advanced chip production capacity by 2027 to meet strong demand despite the current economic downturn.
Taiwan Semiconductor Manufacturing Co, the world’s second-largest foundry, is aiming to mass produce advanced 2-nanometre technology chip chips by 2025. 1.4-nm chips will be available by 2027. These chips are designed for high-performance computing applications like artificial intelligence.
Monsoon Kang (executive vice president, Samsung Electronics’s foundry company), stated Tuesday that there has been some progress in raising prices.
In June, Samsung began mass-producing chips using 3-nm technology. Samsung stated that the company was in discussions with potential customers to collaborate on 3-nm technology, such as Qualcomm, Tesla, and Advanced Micro Devices.
Samsung, the largest manufacturer of memory chips, has struggled to meet clients’ expectations in recent years regarding foundry yields. Analysts stated that the company had pushed forward advanced technology too fast to compete with TSMC but was less experienced in long-term client cooperation required for contract manufacturing.
Kyung Kyehyun, co-CEO of Samsung, that although its foundry business was slower than TSMC’s in 5- and 4-nm chip development and performance, customers were still interested in the new version of 3-nm chips which will be available in 2024.
Kang stated, “We have been meeting our customers’ expectations from the beginning of 3-nm mass-production this year.”
He pointed out that the demand for high-performance 5-nm chips and finer chips is increasing rapidly despite inflationary pressures resulting from long-term growth of high-performance computing and artificial intelligence, as well as 5G and 6G connectivity, and automotive applications.
He said that even if all investments are made, the industry might not be able to meet its demand.
Kang said that the ASML has a limited supply of advanced chipmaking machines, which limits the number of advanced chips that can be made.
Kang stated that US customers are particularly interested in American production for the stability of supply chains. He said, “Our Taylor site has a large area… It’s an excellent site for expansion.”
Samsung is currently building a chip plant in Taylor, Texas for operations that will begin in 2024.
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