Samsung building new 7nm foundry plant to catch up with TSMC

Samsung’s semiconductor division is a veritable cash cow for the company which is why it has been pouring money into its manufacturing facilities to meet rising demand and further consolidate its position in the market. The company decided to invest in a new memory chip production line recently at its Pyeongtaek plant to better prepare for future demand.

Taiwan-based TSMC got a leg up on Samsung by focusing on the 7nm process earlier and Samsung now wants to catch up by building a new foundry plant equipped with advanced process technologies in Hwaseong, Gyeonggi Province, South Korea.

New 7nm foundry plant to begin production by next year

A South Korean news outlet has reported today that Samsung is going to break ground this week for a new 7-nanometer foundry plant. It’s going to hold a ceremony with some 100 local residents in Hwaseong on Friday to mark the ground breaking. A Samsung official has said that this new plant is planned to be used largely for foundry production but it could be expanded further to produce other components.

The new 7nm foundry will be equipped with the latest Extreme Ultraviolet lithography equipment imported from the Netherlands. We’re previously explained in detail how Samsung’s 7nm process will be superior to rivals like TSMC because it’s going to use EUV technology compared to the traditional optical process used by TSMC.

Samsung expects to start mass producing 7nm chips at this facility from next year.