Samsung is one of the biggest semiconductor chip manufacturing firms in the world. However, it lags behind TSMC (Taiwan Semiconductor Manufacturing Company) in terms of production capacity and technology. With the ongoing chip shortage in mind, the South Korean firm said it is planning to triple its production capacity by 2026.
On Thursday, Samsung Foundry said it would build at least one more chip fabrication plant and expand the production capacity at existing plants. This move will give the company a better chance to compete with market leader TSMC and newcomer Intel Foundry Services.
Samsung executive Han Seung-hoon said, “We plan to expand our capacity about three times by 2026 to meet customers’ needs as much as possible by expanding capacity in Pyeongtaek as well as considering establishing a new plant in the US” during the company’s earnings announcement. However, the company has never revealed its actual chip production capacity with respect to advanced nodes like 5nm and 7nm, so it is hard to understand what “three times” actually means.
The South Korean company has been in talks with US authorities to expand its plant in Austin, Texas, and set up an additional chip manufacturing plant in either New York, Arizona, or Texas. However, it hasn’t revealed its final site and plans yet. The company has plans to invest more than $150 billion to become the world’s biggest semiconductor chip firm.
Samsung Foundry currently makes chips for various clients, including high-profile ones like IBM, Nvidia, and Qualcomm. The company recently announced that it has started the mass production of 4nm chips, and its 3nm chips will be available in the second half of 2022.
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