Samsung Takes On TSMC and Intel, Gears Up for 2-nanometer Chip Production

Samsung Electronics Co, Ltd's SSNLF chip foundry business is adding production capacity and more advanced manufacturing techniques intensifying rivalry with Taiwan Semiconductor Manufacturing Company Ltd TSM and foundry debutant Intel Corp INTC.

It looks to introduce 2-nanometer production for mobile phone parts by 2025 and expand applications, Bloomberg cites a company presentation Tuesday in San Jose, California. 

Samsung also proposes significantly boosting output in Pyeongtaek, South Korea, and Taylor, Texas, to ramp up the foundry division.

The artificial intelligence boom has been pivotal in driving interest in advanced processors. 

Samsung said its 2nm process technology would improve performance by 12% and power efficiency by 25% compared to its most advanced offering today, which is at 3nm.

Like peers, Samsung aims to diversify its manufacturing footprint geographically, heavily concentrated in East Asia. The company expects to complete the new Taylor plant in 2023, targeting to kick off operation in the second half of 2024.

The company said that expanding production lines at Pyeongtaek and the Taylor fab will boost Samsung's capacity sevenfold by 2027 compared to 2021. In addition to current chip manufacturing sites, Samsung will expand into a new Yongin production base.

The U.S., Europe, and Japan earmarked government money to cultivate domestic chip production.

Price Action: TSM shares traded lower by 1.16% at $100.80 premarket on the last check Wednesday.

Photo by Pierre Lecourt via Flickr