Samsung to triple foundry production by 2026

Samsung to triple foundry production by 2026

Business news |
Consumer electronics giant Samsung has said it plans to triple its foundry chip manufacturing capacity over the next five years as it seeks to compete with market leader TSMC.
By Peter Clarke

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The leader in the memory IC market as well as being a producer of leading-edge processor ICs for its own use, Samsung said it will expand production at Pyeongtaek and may build an additional wafer fab in the United States to meet rising demand. Samsung already operates a fan in Austin, Texas, and is considering the location for a second fab.

The foundry chip market is likely to be worth about $120 billion in 2022, according to TrendForce, with TSMC holding about 55 percent and Samsung 18 percent. These are the only two companies able to manufacture leading-edge silicon at nominal nodes of 7 to 5nm.

The semiconductor industry has been in a chronic undersupply situation since the Covid-19 pandemic providing an opportunity to raise prices and improve profitability.

“We plan to expand our capacity about three times by 2026 to meet customers’ needs as much as possible by expanding capacity in Pyeongtaek as well as considering establishing a new plant in the US,” Nikkei reported Han Seung-hoon, a Samsung executive, saying during the company’s earnings conference call.

Samsung is pushing hard to try and catch up with TSMC and said that is 3nm process is expected to begin manufacturing in 1H22 with a second iteration of the process due to come in 2H22.

“The foundry business is expected to continue to deliver strong improvements in results by securing technology leadership through 3-nm gate-all-around process and by meeting demand through active investments,” Han said (see Samsung releases PDK for 3nm gate-all-around processes)

Related links and articles:

www.samsung.com

News articles:

Samsung sees dip in chip business, plans more capacity

Samsung ups foundry prices to fund capacity expansion

Samsung releases PDK for 3nm gate-all-around processes

Samsung looks to 2nm in 2025

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