Samsung beefs up chip foundry business as it looks to challenge TSMC
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Samsung will also increase output in Pyeongtaek, South Korea, and Taylor, Texas, to shore up the foundry division.
PHOTO: REUTERS
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SAN FRANCISCO – Samsung Electronics’s chip foundry business is adding production capacity and more advanced manufacturing techniques, aiming to make gains on market leader Taiwan Semiconductor Manufacturing Co (TSMC).
The South Korean company said it will introduce so-called 2-nanometre production for cellphone parts by 2025.
It will also raise output in the South Korean city of Pyeongtaek and the city of Taylor in the US state of Texas to shore up the foundry division, which makes chips for customers on a contract basis, the firm said at a presentation on Tuesday in San Jose, California.
Samsung is looking to catch up with TSMC while also fending off a nascent challenge from Intel, which is pushing into the foundry market.
While the chip industry in general is suffering from sluggish demand for phone and personal computer parts, the artificial intelligence boom has spurred interest in advanced processors.
Like other chipmakers, Samsung is looking to geographically diversify its manufacturing footprint, which is heavily concentrated in East Asia.
The company, which has operated a facility in the US city of Austin, Texas, for about 20 years, expects to complete the new Taylor plant in 2023.
The Biden administration is looking to cultivate domestic chip production
Europe and Japan are also setting aside government money to foster the industry in those locations. BLOOMBERG
