In its foundry forum 2022, Samsung Electronics (GB:SMSN) announced five-year plans to increase chip production capacity to compete with Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) (GB:0LCV).
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Samsung is targeting the launch of advanced-level chips, including 2-nanometre technology chips by 2025 and 1.4-nanometre chips by 2027.
The company is also planning to increase its chip production by a factor of three by 2027.
Among the new chips will be versions of 3-nanometre chips that the company is currently producing which will be used in artificial intelligence.
TSMC will also start the production of chips in a similar time frame.
In recent years, Samsung’s foundry (chipmaking) business has moved slowly in terms of schedule and chip performance. With this ambitious plan, Samsung is aiming to scale up its foundry division and gain more market share.
TSMC currently leads the foundry market with more than 50% of the market share globally, followed by Samsung.
SK Kim, the analyst at Daiwa Capital Markets, said, “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.”
What are the products of Samsung Electronics?
Samsung Electronics offers a wide range of products including mobile phones, memory chips, televisions, cameras, laptops, and more.
The company is known for its consumer electronics business and is a global leader in technology.
Conclusion
Samsung’s announcement comes at a time of an economic slowdown and reflects the company’s optimism about increased demand.
