- Samsung expands its chip manufacturing business to compete with TSMC.
- The company seeks to dominate the nanochip market with its 2nm production.
- The rivalry with TSMC is intense, with Samsung looking to close the gap in capacity and market share.
Samsung Electronics confirmed this Wednesday, June 28, its ambitious plan to expand its chip manufacturing business, a market in which it seeks to take away market share from the leader TSMC.
Although Samsung is known primarily for its smartphones, its semiconductor division is primarily responsible for its profits.
In addition to making memory chips, Samsung has a foundry business that produces semiconductors for other companies, such as Qualcomm.
In early 2023, Samsung announced its intention to start production of 2-nanometer chips in the year 2025.
Now, the company has given details on the matter, revealing that mass production of 2nm chips for mobile applications will begin in 2025, followed by expansion into high-performance computing in 2026 and the automotive sector in 2027.
The nanometer size refers to the size of each individual transistor that makes up the chips.
The smaller the transistors, the more they can cram into a single semiconductor, resulting in smaller, more efficient, and more powerful chips.
Samsung understands that the demand for these most advanced chips in future smartphones will be huge and is preparing for it.
The Korean company also aims to enter the high-performance computing market, making and selling chips for data centers that train and deploy AI applications.
However, Samsung in most fields (with the exception of memory chips) it is behind Taiwan’s TSMC, the world’s largest contract manufacturer.
In the first quarter of 2023, TSMC accounted for 59 percent of global semiconductor foundry revenue, while Samsung reached just 14 percent, according to data from Counterpoint Research. CNBC.
In order to close this difference, Samsung’s strategy is to increase its capacity and establish a path of growth in the production of chips.
To achieve this, it announced new plants and lines in Pyeongtaek, South Korea, and the city of Taylor, Texas.
Competence
The rivalry between Samsung and TSMC is a major issue in the semiconductor industry.
Both companies are competing to lead the market and secure multi-billion dollar deals with big customers like Apple and Nvidia.
Manufacturing capacity and technological innovation are key factors in this competition as companies seek to stay ahead and meet the growing demands for more advanced chips.
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