Samsung Investing $116 Billion in Manufacturing Plant to Take on TSMC
To make its mark on the chipset industry and take on the famous made-to-order foundry business TSMC, the Korean tech giant Samsung has announced the commencement of construction of its 5-nanometer fabrication facility in Pyeongtaek.
Currently, TSMC is the only chipset manufacturer mass producing 5nm chipsets that will be seen in Smartphones later this year. The fab (fabrication facility) also recently announced that it will start producing 3nm chipsets by 2021 and is on the R&D phase for the 2nm process.
TSMC has been leading the chipset market in recent memory. However, in its attempts to topple the company’s throne, Samsung, in April 2019, announced its plan of spending $116 billion to compete with TSMC and Intel in contract chipmaking. The company will focus on making silicon for customers like Qualcomm Inc. or Nvidia. Additionally, the company aims to hire thousands and ramp up investment in logic chips in the years leading up to 2030.
According to ES Jung, head of contract chipmaking at Samsung:
This will enable us to break new ground while driving robust growth for Samsung’s foundry business.
As far as TSMC’s business is concerned, the fab has already taken a hit. More than one-tenth of its business is already threatened as the Trump government imposes restrictions on the sale of semiconductors made with American gear to Huawei. Samsung’s announcement coincides with these restrictions. However, it is nearly impossible that Samsung will be able to win the race when it comes to the development of 5nm process chipsets.