December 10, 2022
Samsung Electronics targets mass production of 2nm chips by 2025, 1.4nm by 2027

Samsung’s chip contract manufacturing business said on Tuesday it plans to more than triple its advanced chips production capacity by 2027 to meet strong demand despite current global economic constraints.

The world’s second-largest foundry after Taiwan Semiconductor Manufacturing Company (TSMC) is targeting mass production of advanced 2-nanometer technology chips by 2025 and 1.4-nanometer chips by 2027, which can be used for high-performance computing and artificial intelligence such as prescribed for use in applications.

Moonsu said, “There has been some progress this year (in raising prices), and the costs are reflecting… currently the new orders won will be placed after 2-3 years, so the direct impact of the current environment will be minimal. ” Kang, executive vice president of Samsung’s foundry business.

Samsung began mass production of chips with 3-nanometer technology in June. Samsung said the company was in talks with potential customers for the 3-nanometer collaboration, including Qualcomm, Tesla and AMD.

Samsung, the world’s largest memory chip maker, has had difficulties meeting customer expectations for foundry yields in recent years. Analysts said the company moved advanced technology too quickly to compete with TSMC, but suffered from having little experience with the long-term customer support required in contract manufacturing.

Samsung co-CEO Kyung Kae-hyun told reporters that its foundry business was lagging behind TSMC’s development program and performance in 5 and 4-nanometer chips, but customers are interested in a second version of 3-nanometer chips to be built by 2024. Used to keep

“We have been in line with customer expectations since the start of 3-nanometer mass production this year,” Kang said.

He said the demand for advanced 5-nanometer and improved chips is growing rapidly despite the current inflationary pressures due to high-performance computing, artificial intelligence, 5G and 6G connectivity and the long-term expansion of automotive applications.

He added that it may be difficult for the industry to meet the demand even if all the planned investments are executed.

Kang said the limited number of advanced chipmaking machines produced by Dutch company ASML limits how much advanced chip capacity can be combined.

“US customers are particularly interested in producing in the United States for supply chain stability,” Kang said. “Our Taylor site is huge… it’s a good site for expansion,” he said.

Samsung is currently building chip production in Taylor, Texas, for operations to begin in 2024.

© Thomson Reuters 2022

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