Key Points
- Samsung announces detailed roadmap: Samsung Electronics has presented a comprehensive roadmap to expand its chip manufacturing business, with a focus on cutting-edge semiconductors, as it strives to catch up with industry leader TSMC.
- Advancements in nanometer technology: The company plans to begin mass production of 2nm process chips for mobile applications by 2025, followed by expansion into high-performance computing in 2026 and the automotive industry in 2027.
- Strategies to close the gap: Samsung aims to enhance its chip manufacturing capacity, introduce advanced chip technologies, and target high-growth areas in the market to narrow the distance between its foundry business and TSMC.
Samsung Electronics has announced its plans to expand its chip manufacturing business, aiming to close the gap with industry leader TSMC. Although Samsung is well-known for its smartphones, its semiconductor business is the primary driver of its profits. The company produces memory chips utilized in data centers and laptops.
In addition to its memory chip production, Samsung operates a chip manufacturing business known as a foundry, which manufactures semiconductors for other companies involved in chip design, such as Qualcomm.
Earlier this year, Samsung disclosed its intention to commence chip production using a 2-nanometer process by 2025. Now, the company has provided a more detailed roadmap. According to the plan, mass production of the 2nm process will begin in 2025 for mobile applications, followed by expansion into high-performance computing in 2026 and the automotive industry in 2027.
The nanometer measurement refers to the size of individual transistors on a chip. Smaller transistors allow for greater packing density on a single semiconductor, resulting in more powerful and efficient chips. For comparison, Apple’s latest iPhone processor is manufactured using a 5nm process. Samsung anticipates the need for more advanced chips in future smartphones and is preparing to meet that demand by 2025.
High-performance computing involves chips designed for data centers to support the training and deployment of artificial intelligence applications. Samsung aims to capitalize on the growth of this technology, which has been partially driven by the popularity of OpenAI’s ChatGPT. Nvidia, a leading AI chip manufacturer, relies on foundries like TSMC for its semiconductor production.
Samsung’s foundry business currently lags behind TSMC, the world’s largest contract manufacturer, by a significant margin. In the first quarter of this year, TSMC accounted for 59% of global semiconductor foundry revenue, while Samsung held a 13% share, according to Counterpoint Research.
To catch up, Samsung plans to increase its capacity and has outlined a roadmap targeting high-growth areas in the chip market. The company has reaffirmed its commitment to introducing the 1.4nm process as planned in 2027.
Samsung is also actively expanding its chip manufacturing capacity, including the establishment of new manufacturing lines in Pyeongtaek, South Korea, and Taylor, Texas, as previously announced.
Credits: Photo by Rubaitul Azad on Unsplash
