Samsung Electronics is pouring $116 billion into its chip business, which it is doing to catch up with Taiwan Semiconductor Manufacturing Co (TSMC).
Through such investment, Samsung is targeting to be able to produce 3nm chips in 2022. The target is aimed at catching up with TSMC’s target, which is expected to be ready to mass produce 3nm chips by the second half of 2022.
According to Park Jae-hong, Samsung’s executive VP of foundry design, they have started developing initial design tools to achieve this target as quoted from Bloomberg, Thursday (19/11/2020).
Samsung will also adopt GAA technology
Samsung is not not only prepares for chip business, but also expected to overtake TSMC in terms of adopting a technology called Gate-All-Around (GAA). It will be used in the 3nm chip. Besides, TSMC is said to still use FinFET technology on 3nm chips. And also TSMC has just switched to GAA on 2nm chips.
The use of GAA technology will reduce power consumption, and a number of other advantages over the FinFET. But experts say Samsung needs to be careful in using this technology, because it must be very accurate. Otherwise, the threat is that their investment will be wasted.
The chip business is one of Samsung’s businesses that currently lacks market share. Meanwhile their other businesses such as memory chips and screens are arguably the market leaders.
In 2019, Samsung’s chip business only received 18% of the total chip manufacturing contracts globally. Meanwhile, TSMC dominates with a market share of more than 50%.
Previously, Samsung itself had outlined its plan to invest $ 26 billion during 2020, while TSMC only invested $ 17 billion.
So far, Samsung’s chip business growth is still positive. Although TSMC has secured orders from companies. Such as Apple, companies such as Nvidia, IBM and Qualcomm are starting to switch to Samsung.
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