Samsung Lays Out Roadmap Of Expanding Chip Manufacturing Business To Defeat TSMC

Published  June 29, 2023   0
S Staff

The South Korean company added that towards the end of 2025, it would start manufacturing chips with a 2 nanometer process

Back on Wednesday, the South Korean global giant Samsung Electronics has highlighted its roadmap of expanding chip manufacturing business. According to media reports, Samsung has laid out this strategy in an effort to compete with the Taiwan based semiconductor firm TSMC. 

Although Samsung is mostly popular for its smartphones and consumer electronics products, its main revenue driver is the semiconductor business. The company manufactures top-notch memory chips that are utilized in laptops and data centers. On the other hand, the company also has a foundry in the semiconductor business, which manufactures chips for other fabless firms such as Qualcomm.

During the first half of this year, the South Korean firm also said that towards the end of 2025, it would start manufacturing chips with a 2 nanometer process. Now, a detailed roadmap has been laid out by Samsung in regards to mass production of this chip for mobile applications and then it would expand it to high performance computing in 2026 and automotive in 2027. The nanometer basically shows the size of each transistor on the chip. If the transistor size is smaller it can be seamlessly packed onto a semiconductor. 

For instance, Apple’s latest iPhones are furnished with chips of 5-nanometer process and hence, Samsung speculates that upcoming modern smartphones will need more sophisticated chipset, which it wants to manufacture by the end of 2025. Now, when we speak of high performance computing, it relates to chipset for data centers to deploy artificial intelligence applications. And with the ongoing popularity of OpenAI’s ChatGPT, Samsung wants to enter into that space as well. When we speak of top-notch AI chips, the US based Nvidia is leading the market and it also depends on TSMC foundry for manufacturing of the chips.

Experts highlighted that Samsung’s dream of defeating TSMC in the foundry space is currently a difficult task because the latter accounted for 59 percent of the international semiconductor foundry revenue in the first quarter of this year. Samsung, on the other hand, has grabbed only 13 percent share. The South Korean major has again repeated the statement that its chip manufacturing with 1.4-nm process will begin in the first quarter of 2027.