technology

Faced with TSMC, Samsung wants to manufacture the most advanced electronic chips in the world by 2027

Choi Si-young, President of Samsung’s Foundry Business, at the 2022 Samsung Foundry Forum.

© Samsung

The battle is heating up between Samsung and TSMC in the semiconductor market. After having launched the mass production of electronic chips engraved in 3 nm earlier this year, toasting the politeness of its Taiwanese rival in passing, the South Korean conglomerate announced on Tuesday October 4 its intention to move up a gear in the next few years, on the occasion of the Samsung Foundry Forum 2022. The Asian giant thus aims to manufacture the most advanced electronic chips in the world within five years.

To achieve this, Samsung plans to start producing 2nm chips in 2025 and 1.4nm chips in 2027. These new electronic components will be based on Gate-All-Around (GAA) technology, which allows improve performance by 30% and reduce power consumption by 50% compared to the existing FinFET process, according to the Seoul juggernaut.

5G, IoT, Automotive and High Performance Computing

Within five years, the company hopes to have tripled its production capacity for its most advanced chips compared to today. In this context, the South Korean firm will be able to count on a new factory in Texas, based in Taylor, under construction. The group has spent 17 billion dollars to get it out of the ground. Its first production lines should be operational in 2024.

This war effort by Samsung in semiconductors should enable the company to meet growing needs in sectors of the future. Thus, electronic components for high performance computing, automotive, 5G and the Internet of Things (IoT) should represent more than 50% of its foundry activity by 2027.

To ramp up in semiconductors, but also in other strategic sectors such as biopharmaceutical technologies, Samsung has unveiled an investment plan of nearly 360 billion dollars over five years. This roadmap aims to better compete with Taiwanese rival TSMC, which dominates the global semiconductor market. The latter plans to invest 100 billion dollars over three years in its production units. The battle for figures has only just begun as the sector has faced an endless shortage since the Covid-19 pandemic.

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