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Samsung to build $17 bil foundry in Taylor to compete against TSMC Decision to build new foundry plant is to respond quickly to rising demand for chips

Translated by Kim So-in 공개 2021-11-26 08:21:26

이 기사는 2021년 11월 26일 08:19 더벨 유료페이지에 표출된 기사입니다.

Samsung Electronics will build a 20 trillion won ($17 billion) chipmaking plant in Taylor, Texas, as it aims to become the world’s top system semiconductor company by 2030.

The new U.S. foundry is expected to help Samsung respond more quickly to demand from US-based fabless companies while challenging the world’s No. 1 foundry player Taiwan Semiconductor Manufacturing (TSMC).

The Korean tech giant said on Wednesday that it will invest $17 billion in its new semiconductor fabrication plant in Taylor, which is the largest investment ever made by the company in the U.S. Construction will begin in the first half of next year, with an aim to start operations in the second half of 2024.

The Taylor plant will bring Samsung’s overseas chipmaking operations to three, alongside Samsung Austin Semiconductor and Samsung China Semiconductor.

It has been pointed out that Samsung needs to improve performance in the non-memory chip sector, which accounts for 65% of the total semiconductor market, in order to further expand its size. Samsung aims to overtake bigger foundry rival TSMC by 2030.

In order for Samsung to overtake its Taiwanese rival, the tech giant has to secure technology advancement alongside greater manufacturing capacity. Samsung plans to begin mass production of chips using its 3-nanometer process node in the first half of 2022, several months earlier than TSMC, which will start mass production in the second half of 2022.

Apple, Qualcomm, Advanced Micro Devices (AMD), NVidia, and Google are among companies that use chips using 10-nanometer or below process node.

Industry officials said the Taylor plant to adopt advanced 5-nanometer or below process node, which means the company has an opportunity to expand orders from AMD and Qualcomm. Industry officials expect AMD and Qualcomm to be the first to use Samsung’s 3-nanometer process node.

Samsung's latest investment comes as the U.S. steps up efforts to boost its domestic chip production to counter China’s rising influence. The tech giant just completed its second NAND flash plant in Xian, China. Samsung is expected to expand its NAND production in China while responding to non-memory chip demand with advanced chip manufacturing technology in the U.S. (Reporting by Hye-ran Kim)
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