Competition with TSMC has forced Samsung to invest an astronomical $116 billion in chip manufacturing

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Image source: Фото: Globallookpress.com

According to recent data, Samsung has prepared a long-term investment plan in which it plans to invest $116 billion in chip production to surpass TSMC. Bloomberg reports that the company plans to start mass production of 3-nm chips by 2022.

Park Jae - Hong, Samsung's Executive Vice President of lithography, says the company is already developing tools for manufacturing 3-nm chips in conjunction with its partners. TSMC also plans to start production of 3-nm products in 2022, so the competition between the companies will be intense. However, Samsung is going to surpass TSMC by introducing GAA (Gate-All-Around) technology earlier, which will further reduce the power consumption of chips.

Despite the successful business of manufacturing memory chips and displays, Samsung is noticeably behind TSMC in the production of logic chips. It is reported that last year it received only 18 percent of orders for chip production, while TSMC owned more than half of the entire market. To change this, the Korean company plans to invest $26 billion in chip production this year, while TSMC will invest only $17 billion.

It is worth noting that Samsung, like TSMC, has created production facilities for manufacturing chips using EUV technology. This may also be due to the fact that Intel recently announced plans to outsource the production of some chips.

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