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    Samsung to reportedly start constructing its third chip plant next month

    General
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    Last updated: August 10th, 2020 at 06:19 UTC+02:00

    Samsung is trying to cope up with the rising demand for power-efficient chips. It recently started the mass production of 5nm chips, but it has been having problems with the yield, and it may have already lost orders from Qualcomm due to the reason. Now, it is being reported that the company will start the construction of its third chip manufacturing facility in South Korea next month.

    Land preparation for the chip fabrication facility has been taking place since June in Pyeongtaek, South Korea. According to Samsung and the local government bodies, the commencement of the building construction will reportedly start in September. The company reportedly wanted to build the Pyeongtaek Line 3 (P3) earlier than planned and it had asked the government authorities to grant them the permit swiftly.

    The South Korean chip giant is expected to spend KRW 30 trillion (around $25.2 billion) on the P3 plant, which is going to be Samsung's biggest chip fabrication facility in Pyeongtaek. The company reportedly plans to build a total of six chip fabrication facilities in the Pyeongtaek complex. The P1 facility is currently operational, while the P2 facility is expected to fully start next year. Mass production of chips could start at the company's P3 factory in 2023.

    Samsung hasn't revealed what kind of chips will be manufactured at the P3 facility or its production schedule. The company is aggressively pushing to become the world's largest chip company by 2030 and is planning to invest $115 billion to achieve its goal. It also plans to start building three more chip plants—P4, P5, and P6—one after another and has asked the government to secure more industrial water for the construction.

    Via General Samsung Foundry

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