Samsung Beefs Up Chip Foundry Business As It Seems To Oppose TSMC


(Bloomberg) — Samsung Electronics Co.’s chip foundry business has increased production capacity and advanced manufacturing techniques at market leader Taiwan Semiconductor Manufacturing Co.

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The South Korean company said it will introduce so-called 2-nanometer technology for mobile phone parts by 2025 and expand applications. Samsung will significantly increase production in Pyeongtaek, South Korea, and Taylor, Texas, to expand its foundry unit, which makes chips for customers on a contract basis, the company said in a statement Tuesday in San Jose, California.

Read more: Samsung Woos US Chip Buyers on Tech Developments, Texas Focus

The world’s largest memory maker is looking to keep up with TSMC, fending off a nascent challenge from Intel Corp. and pushing into the foundry market. While overall demand for the chip industry’s mobile and personal computing components has been sluggish, the rise of artificial intelligence has fueled interest in advanced processors.

Samsung has shared details of its 2nm process technology, which improves performance by 12% and power efficiency by 25% compared to today’s most advanced 3nm offering.

Like other chipmakers, Samsung is looking to geographically diversify its manufacturing footprint, which is largely located in East Asia. The company, which has operated a facility in Austin for nearly 20 years, expects to complete the new Taylor plant this year, with plans to begin operations in the second half of 2024.

The expansion of production lines in Pyeongtaek along with Taylor Fab will increase Samsung’s capacity sevenfold by 2027 compared to 2021, the company said. In addition to the current chip production sites, Samsung will expand to a new Yoongi production base.

Read more: Samsung joins to lead Korea’s $400 billion bid for key technology

The Biden administration is looking to boost domestic chip manufacturing with nearly $50 billion in stimulus. Officials said they would give some of the money to companies like Samsung that are based abroad but are expanding on American soil. Europe and Japan are allocating government funds to grow the industry in those areas.

–with help from Vlad Savov.

(Updates from the fourth paragraph with details of the company statement)

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