The Korean company is convinced of becoming a benchmark within chips despite being already the leader in its sector, and that is why it intends to triple its semiconductor production in five years.
If you have turned on the television or accessed the internet in the last two months, you will surely have already learned that we are in the middle of a huge crisis worldwide due to a lack of semiconductors.
The pandemic, the increase in demand in all sectors, and the problems of some foundries created a funnel that has almost paralyzed the world. And there Samsung wants to take advantage to dominate the market even more.
Samsung announced Thursday that its semiconductor division will triple its production capacity by 2026, in an attempt to meet the growing demand for chips.
To do this, Samsung Foundry will build at least one new factory and expand the capacity of existing ones. This measure will make Samsung Foundry further distance itself from the prestigious TSMC, the newcomer Intel Foundry Services, and many others that are up and running right now.
Secondly, the company has never disclosed the true capabilities of its advanced and state-of-the-art factories (those that make the chips at 2 and 5 nanometers), so it is difficult to know what the promise of tripling the production of those plants really means.
Samsung is the world’s largest chipmaker by capacity today. To put us in context, as of December 2020, it had an installed capacity of about 3.06 billion 200mm equivalent wafers per month, according to IC Insights.
Nevertheless, most of its semiconductor production capacity is dedicated to DRAM and NAND memory (that is, it goes for RAMS and SSDs).
Although Samsung Foundry is the second largest chip maker by revenue, is the fourth foundry in the world by largely installed capacity.
The new Samsung flagship is already on sale and also with a certain price reduction, and that its launch was a few days ago.
This is because the company mainly focuses on advanced and cutting-edge manufacturing technologies, these processes being less bulky in terms of orders than traditional 12, 16 or 24 nanometer processes that are still used in many products.
The future will need chips for absolutely everything, and there Samsung does not want to lose its piece of the cake. And if the world does not want to freeze again, this effort will have to be made by all semiconductor companies.