Samsung plans to triple foundry chip production capacity by 2026

Find the Latest SoC Solutions
for... Automotive... IoT... Security... Audio... Video

Tech giant's Q3 net profit surges 31% amid strong semiconductor demand

asia.nikkei.com, Oct. 28, 2021 – 

SEOUL -- Samsung Electronics said Thursday that it plans to triple its foundry production capacity by 2026 amid a global chip shortage disrupting production in key industries from autos to smartphones as it reported strong third quarter earnings.

The world's biggest chipmaker by sales said that it will expand its production lines in Pyeongtaek, south of Seoul, and may build a new factory in the U.S. to meet rising demand for the chips that are made-to-order for corporate customers. The South Korean tech giant is working to raise its game in the foundry business and plans to make the components more cost-effective.

"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 U.S.," Han Seung-hoon, a Samsung executive, said on the company's earnings conference call.

Han's comments come as global chipmakers are keen to make inroads in the foundry sector led by Taiwan Semiconductor Manufacturing Co. which boasts a global market share of 53%. Samsung is far back in the No. 2 position at 17%, while GlobalFoundries of the U.S. follows at 6%, according to a market researcher Statista. Leading U.S. chipmaker Intel, meanwhile, announced in March that it plans to become a major provider of the U.S.- and Europe-based foundry capacity to meet surging global demand for semiconductors.

Samsung also reaffirmed that it is scheduled to produce its first 3 nanometer-based chip designs for customers in the first half of 2022, while its second generation of 3 nm is expected in 2023. "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.

click here to read more...

 Back