Samsung is investing over $10billion to launch an advanced processor making plant in Texas. The plant could possibly be effective at creating processors as advanced since 3nm, and are Samsung’s third global to utilize extreme ultraviolet lithography technology in its own chip production. If the plans proceed, building in the plant can start this year, with operations starting when 2023.
This US-based Samsung manufacturing plant can provide Samsung a foothold in receiving new contracts from US clients amidst continuing trade tensions between the United states and China. The move would also attract Samsung into closer competition with TSMC, which produces chips for Apple, amongst others, for instance, 5nm processors found inside Apple’s newest iPhones and Macs. TSMC is also investing in a US-based plant, with a 12 billion place in Arizona that is predicted to begin earning chips by 2024.
Samsung intends to spend $116 billion within the next ten years to non-memory processors, Reuters formerly reported. Chips produced in Austin are now regarded as limited to less complex 14-nanometer process nodes, based on Nikkei. Samsung expects to start supplying chips according to 3nm processor node technologies in 2022. Though the South Korean giant’s power has traditionally been in memory processors, Bloomberg notes the marketplace for logic devices such as smartphone and pc processors is significantly more profitable.
Samsung’s strategies for the plant are allegedly still in their initial stages, but a few first steps have been taken. Nikkei reported in December that Samsung had acquired a 440,000-square-meter plot in Austin, in which it has had a manufacturing existence as the 90s. This past year, city officials started reviewing the organization’s petition to rezone the property for industrial usage. Closing the deal may be determined by Samsung negotiating contentious tax advantages and subsidies in the Biden government, although Bloomberg reports it might go ahead without them.
Samsung already produces processors for Qualcomm and Nvidia, and is close to signing a new deal with Intel. The Korea Times reports that Samsung could produce 15,000 images chips for Intel beginning in the next half of the season in Samsung’s Austin plant. Incoming Intel CEO Pat Gelsinger has stated outsourcing might be part of the organization’s future, stating that although business plans to keep on producing nearly all its processors , it might outsource the production of”certain technologies and products” in 2023, the WSJ accounts .
In addition to making chips for many others Samsung also produces its Exynos-branded processors to be used in its own smartphones.
Samsung nevertheless faces a huge obstacle competing with TSMC, which intends to spend $28 billion this year . By comparison, Samsung’s semiconductor company spent $26 billion final year in capital expenditure, and Bloomberg notes that this was mainly in service of its memory business.
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