South Korean company Samsung Electronics has long sought to reduce its reliance on its memory chip business. It is trying to achieve this by strengthening the contract manufacturing of semiconductor components. By 2027, Samsung expects to triple its manufacturing capacity using advanced manufacturing processes, as well as master the 1.4-nm process technology. By the middle of the decade, the company's customers will be able to receive 2-nm products.
The corresponding plans of Samsung Electronics were announced this week. In June, the company began delivering 3nm products to its first customers, but in the future, they may include not only Qualcomm and Tesla, but also AMD, as Samsung representatives explained during a profile briefing, according to Reuters. Most likely, the second generation of the 3nm process that Samsung will offer in 2024 will be in much higher demand, according to the company. Samsung representatives acknowledge that in terms of the development of 5-nm and 4-nm lithography, the company lagged behind its main competitor TSMC, but in the future parity should be restored. In fact, even the first generation of Samsung's 3nm products meet customer expectations. The yield rate on the Samsung assembly line is now one of the highest in the industry.
Demand for process technology down to 5 nm or less is growing rapidly even amid significant inflation pressures, as in the long term, these components should be in demand in the field of high-performance computing, artificial intelligence systems, 5G and 6G communications networks, as well as in the automotive sector. If you do not spend money on the development of advanced lithography now, according to Samsung representatives, then in the future the semiconductor industry simply cannot cope with the demand for core products.
The pace of expansion in advanced lithographic manufacturing is currently being held back by ASML's inability to supply its customers with the required number of lithographic scanners. Samsung notes the high interest of American customers in obtaining advanced locally produced components, and from this point of view, the new facility under construction in Texas has great potential for expansion. The Taylor facility will begin operations in 2024, the company added. It is possible that 3nm components will be produced there, although nothing has been officially announced about the timing of such a migration.
Source https://news.samsung.com/global/samsung-electronics-unveils-plans-for-1-4nm-process-technology-and-investment-for-production-capacity-at-samsung-foundry-forum-2022
