Samsung Electronics is planning a mass production of 2nm chips by 2025 and a 1.4nm by 2027

Samsung Electronics is planning a mass production of 2nm chips by 2025 and a 1.4nm by 2027 ...

Despite the current global economic woes, Samsung''s chip contract manufacturing company said on Tuesday that it intends to triple its advanced chips production capacity by 2027.

The world''s second-largest foundry, following Taiwan Semiconductor Manufacturing Co (TSMC), is focusing on mass production of advanced 2-nanometre technology chips by 2025 and 1.4-nanometre chips by 2027, ideal for use in high-performance computing and artificial intelligence applications.

"There have been some progress in raising prices this year, and costs are being reflected. "New orders won currently will be made after 2-3 years, so the direct impact of the current atmosphere will be minimal," said Moonsoo Kang, the executive vice president of Samsung''s foundry business.

Samsung began mass-producing chips with 3-nanometre technology in June. The company was in discussions with potential customers for a 3-nanometre collaboration, according to Samsung.

Samsung, the world''s largest memory chip manufacturer, has encountered difficulties in achieving clients'' interest in foundry yields in recent years. Analysts said the company had pushed advanced technology too rapidly to compete with TSMC, but they had had little experience with the long-term client collaboration required in contract manufacturing.

Samsung Co-CEO Kyung Kye-hyun told reporters that his foundry business had stalled TSMC''s development schedule and performance in 5and 4-nanometre chips, but customers were concerned about the second version of 3-nanometre chips to be produced between 2024 and 2024.

"We have kept keeping in line with customers'' expectations since the start of 3-nanometre mass production this year," Kang said.

Despite recent inflationary concerns, demand for advanced 5-nanometre and finer chips is rapidly increasing, owing to the long-term expansion of high-performance computing, artificial intelligence, 5G and 6G connectivity, and automotive applications.

Even if all planned investments are executed, the industry might be difficult to meet demand, according to the spokesman.

The limited number of advanced chipmaking machines that can be produced by the Dutch company ASML has imposed restrictions on how much more advanced, according to Kang.

"Our Taylor facility is very large... It''s a fantastic site for expansion," Kang said.

Samsung is developing chip manufacturing in Taylor, Texas, beginning in 2024.

2022 Thomson Reuters