Samsung Electronics Begins World’s First 3nm Chip Production Amid Push for New Foundry Customers

Samsung Electronics Co Ltd stated on Thursday it has begun mass producing chips with superior 3nm expertise, the primary to take action globally, because it seeks new purchasers to catch far larger rival TSMC in contract chip manufacturing.

In contrast with standard 5nm chips, the newly developed first-gen 3nm course of can cut back energy consumption by as much as 45 p.c, enhance efficiency by 23 p.c, and cut back space by 16 p.c, Samsung stated in a press release.

The South Korean agency didn’t title purchasers for its newest foundry expertise, which provides made-to-order chips like cell processors and high-performance computing chips, and analysts stated Samsung itself and Chinese language corporations are anticipated to be among the many preliminary prospects.

Taiwan Semiconductor Manufacturing Co (TSMC) is the world’s most superior foundry chipmaker and controls about 54 p.c of the worldwide marketplace for contract manufacturing of chips, utilized by corporations reminiscent of Apple and Qualcomm which haven’t got their very own semiconductor amenities.

Samsung, a distant second with a 16.3 p.c market share, in response to knowledge supplier TrendForce, introduced a 171 trillion (roughly Rs. 10,39,500 crore) received funding plan final yr to overhaul TSMC because the world’s prime logic chipmaker by 2030.

“We’ll proceed energetic innovation in aggressive expertise growth,” stated Siyoung Choi, Head of Foundry Enterprise at Samsung.

Samsung Co-CEO Kyung Kye-hyun stated earlier this yr its foundry enterprise would search for new purchasers in China, the place it expects excessive market development, as corporations from automakers to equipment items producers rush to safe capability to handle persistent international chip shortages.

Whereas Samsung is the primary to manufacturing with 3nm chip manufacturing, TSMC is planning 2nm quantity manufacturing in 2025.

Samsung is the market chief in reminiscence chips, however it had been outspent by frontrunner TSMC within the extra various foundry enterprise, making it troublesome to compete, analysts stated.

“Non-memory is completely different, there’s an excessive amount of selection,” stated Kim Yang-jae, analyst at Daol Funding & Securities.

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