Samsung says 1.4nm chips coming in 2027, with more US-based production amid competition with TSMC and Intel
- Samsung has set the aggressive target as it seeks to triple its revenue from 2021 to 2027
- The South Korean chip giant is building a second plant in Texas as competition with TSMC and Intel heats up in the foundry business
The company’s chip contract-manufacturing unit – known as a foundry – is looking to triple its revenue by that year from the 2021 level, senior vice-president Moonsoo Kang said at a briefing Monday in San Jose, California. To get there, the business will need to make several technological leaps and further inroads in the US market for outsourced chips.
Samsung shares were up as much as 4.1 per cent in Seoul on Tuesday after falling by almost a third this year with rising costs and a downturn in the memory market.
Samsung executives at the briefing said the company’s yields – the percentage of functioning chips per production run – are now among the best in the industry. And it’s racing to stay on the cutting edge of technology. The company aims to take the lead in advanced chip-making by starting mass production of second-generation 3nm chips in 2024 and then 2nm parts in 2025. That will set the stage for the 1.4nm products two years later.
Part of Samsung’s pitch to US customers is its decision to manufacture in America. Samsung has an existing plant in Austin, Texas, and is building one in the nearby city of Taylor. That new plant, which is set to begin operations in 2024, is likely to use the latest production methods, such as 3nm technology.
Samsung also aims to triple its capacity of leading-edge manufacturing by 2027. It has no plans to add to its limited availability of older types of production.
Samsung could become an even bigger manufacturer in Texas if needed, Kang said. The company has secured enough sites in the region to let it grow to meet demand.