Samsung to triple production of state-of-the-art chips by 2027

MOSCOW, 4 ok – PRIME. Samsung Electronics’ microchip contract manufacturing business said on Tuesday that despite the current difficulties in the global economy, it plans to more than triple its production of advanced microchips by 2027 to meet strong demand.

The world’s largest chipmaker after Taiwan Semiconductor Manufacturing Co (TSMC) is going to mass-produce advanced chips based on 2nm technology by 2025, and by 2027 – the production of 1.4nm chips. They are designed for use in the high performance computing and artificial intelligence segments.

“There has been some progress this year (in price increases) and we are bearing the costs… The new orders now received will be completed in 2-3 years, so the direct impact of this situation will be minimal,” said Munsu Kang, executive vice president of microelectronics business. produced by Samsung Electronics.

Samsung began mass production of 3nm chips in June. Now the company is negotiating with potential customers on cooperation in the 3-nanometer technology segment. These customers include Qualcomm, Tesla and Advanced Micro Devices, Samsung said.

Samsung co-CEO Kyung Ki-hyun told reporters that the company’s microelectronics business is behind TSMC’s schedule in terms of development and efficiency of 5nm and 4nm chips, but customers are interested in the second version of 3nm chips, which will be produced from 2024.

“Since starting mass production of 3nm chips this year, we have been meeting customer expectations,” said Kahn.

He noted that the demand for advanced 5nm and even smaller chips is growing rapidly despite the current inflationary pressure associated with years of adoption of high-performance computing systems, artificial intelligence, 5G and 6G communication standards and automotive applications.

However, it may be difficult for the industry to keep up with demand even if all planned investments are made, he warned. The limited number of advanced chip-making machines that the Dutch company ASML can produce limits the expansion of advanced chip manufacturing capacity, Kahn added.

“U.S. customers are particularly interested in manufacturing in the U.S. for supply chain stability,” Kahn said. “Our manufacturing facility in Taylor is very large… It’s a good place to expand.”

Samsung is now setting up a chip manufacturing facility in Taylor, Texas. Operations at this facility will begin in 2024.