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Samsung will expand its semiconductor production capacity this year with legacy nodes

Business
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Last updated: March 17th, 2022 at 13:56 UTC+02:00

In an effort to lure new customers and feed the growing demand for items such as CMOS image sensors, Samsung is reportedly expanding the foundry capacity in legacy nodes (older fabrication processes) starting this year. Samsung Foundry will increase its productivity to the maximum in order to increase its profit margins.

As per a report by BusinessKorea, Samsung is also eyeing to start mass production of the advanced 3nm (and lower) fabrication process in H1 of 2022. Samsung said in its business report that it is considering an expansion of mature node capacity in the mid to long term. This will be done as the demand will continue to grow this year as well.

The South Korean giant is also looking to sharpen its production competitiveness by building new fabrications through timely investments. Talking about investments, in 2021, Samsung’s facility investment touched an all-time high of KRW 48.22 trillion. This is an increase of 25.3% from a year ago.

Samsung is making all these efforts to narrow the gap with its primary chipmaking rival TSMC, which has had an upper hand over the past few years, at least when it comes to efficiency. Samsung’s current share stands at 40% of the global market of 10nm chip manufacturing.

TSMC is the biggest player in the contract semiconductor manufacturing market. However, Samsung will be pushing its limits, and by 2026, it is planning to grab 300 foundry customers and triple its production value.

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Business 3nmSamsungSamsung FoundryTSMC
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