Samsung said it will start making chips with a 2nm process in 2025 and 1.4nm process in 2027. These will be some of the most advanced semiconductors in the world. Samsung is in a race to catch up with market leader TSMC.
Seong Joon Cho | Bloomberg | Getty Images
Samsung On Tuesday, it said it aims to make some of the world’s most advanced semiconductors within five years, such as the race between the South Korean electronics giant and the world’s largest chip maker. TSMC to heat up.
The company has laid out a roadmap for its chip production plans, and said it will start making chips with a 2nm process in 2025 and 1.4nm in 2027.
The nanometer figure indicates the size of each individual transistor on a chip. The smaller the transistor, the more of it can be packed into a single semiconductor. Usually, reducing the nanometer size can lead to more powerful and efficient chips.
For comparison, the processor in appleThe latest iPhone 14 Pro and Pro Max models are a 4nm chip.
Samsung started producing 3 nanometer chips earlier this year.
Samsung shares in South Korea closed nearly 4% higher on Tuesday.
The South Korean company, known for its consumer electronics and memory chips, is looking to ramp up its chip-making, or plumbing, contracts in a bid to catch up with Taiwan’s TSMC.
Samsung is the world’s second largest foundry by revenue, with a market share of 17.3% compared to TSMC’s 52.9%, according to TrendForce.
For its part, TSMC expects to begin production of 3nm chips this year with 2nm production to begin in 2025. However, the company has not officially announced plans to mass-produce 1.4nm chips.
SK Kim, an analyst at Daiwa Capital Markets, told CNBC: “This is the first time the SEC (Samsung Electronics) has directed a long-term foundry roadmap and I think it’s more aggressive than TSMC and market expectations.
Samsung’s ambitious plans come amid global economic winds and signs of slowing demand for semiconductors. Global chip industry sales fell 3.4% in August compared to July, according to the US-based Semiconductor Industry Association.
Despite this, Samsung said it plans to more than triple its production capacity for its more advanced chips by 2027 compared to this year, highlighting its optimism about future demand.
These include its factories in the United States, and Samsung owns a factory in Austin, Texas, and is currently building a $17 billion facility in Taylor in the same state.
Washington was looking forward to Attracting chip makers such as Samsung and TSMC To set up factories in the United States so you can Reduce reliance on manufacturing centers in Taiwan and South Korea.
While Samsung focuses heavily on high-end chips, the company has also said that semiconductors used in high-performance computing, automotive uses, and 5G will make up more than 50% of its plumbing business by 2027. These chips are typically less advanced.
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