Samsung plans to triple its chip production to combat shortages

To say that Samsung is lagging far behind TSMC would be an understatement, And now we know that the Korean company has plans to turn things around while fighting the chip shortage.

During the third quarter earnings meeting, the company announced that it aims to triple its chip production capacity.

Right now, Samsung’s market share in the chip manufacturing business is 17 percent, making it the second largest semiconductor manufacturer. Nevertheless, its biggest rival in this industry, TSMC, maintains a 53 percent market share. That said, Samsung has a long way to go and, according to Nikkei Asia, plans to reduce that disparity by tripling its chip production efforts.

Han Seung-hoon, a Samsung executive, had this to say during the company’s earnings conference call:

“We plan to expand our capacity approximately three times by 2026 to meet customer needs as much as possible by expanding capacity in Pyeongtaek and considering establishing a new plant in the US.”

Samsung’s efforts are not just limited to its own territory in South Korea, but have also spread to the U.S. According to a previous report, the company was close to completing its $ 17 billion chip plant in Texas, and that’s not the only ambition the chip-making giant has.

The company also previously announced that it has plans to mass-produce 3nm chips in the first half of 2022. These 3nm chips will offer a 35 percent performance jump and 50 percent power savings compared to their 7nm LPP nodes, but how it will fare compared to 3nm offerings from TSMC.

Efforts to triple chip production will also be beneficial in filling the chip shortage, which has forced TSMC not only to introduce price increases for its next-generation wafers, but also to begin prioritizing partners who do not stock chips. .

Bringing competition to the foundry business will fuel competition, forcing both manufacturers to move forward to bring cutting edge chips to market while offering options to companies like Apple and Qualcomm and hopefully having a prices according to the end user.