As part of a bid to catch up to strong competition, Samsung announced that it is increasing its production capacity and demand in the market by introducing one of the most advanced semiconductors in the world in five years. We know that different renowned and emerging companies like Korean electronics and TSMC are contributing to this race in the technological world. Hence, the inclusion of Samsung in this race and that too, with futuristic technology, would pave the way forward for the company.
According to the timeline released by Samsung, it has been reported that the company is going to start up the production process of manufacturing chips “with a 2-nanometre process in 2025 and 1.4-nanometre process in 2027”. If you didn’t get the concept of nanometres, it involves the size of each individual transistor that would be embedded on a chip. It should be noted that the smaller size of the transistor would be of many benefits because, in this way, a large number of transistors can be embedded in a single semiconductor device. Thus this technique will further enhance the efficiency of these semiconductor chips.
Coupled with this, it should be noted that Apple’s latest iPhone 14 Pro and Pro Max which were released recently also contain an embedded 4-nanometre chip in their processors and Samsung is now coming in a way to offer stronger competition to Apple as well. It has been noted that Samsung has already scaled up its operations as it started producing 3-nanometer chips at the beginning of this year and this might be the reason that its shares went up to about 4% on Tuesday in the South Korean market. Also, Samsung contributes more in terms of revenue as reported by TrendForce.
To that end, SK Kim, who is an analyst at Daiwa Capital Markets, expressed his views by saying, “This is the first time that SEC (Samsung Electronics) guides for its long-term foundry roadmap and I think it is more aggressive than TSMC and market expectations.” Moreover, Samsung also said that it is planning to increase its production capacity of chips to about three times by 2027. And this can be achieved through its extensive factories that are located in different states of the U.S including Austin, Texas, and Taylor. Its $17 billion plant in Taylor is currently under production which is anticipated to be completed soon.
