Samsung plans to triple its production of chips to combat the ongoing chip shortage and effectively take on TSMC

Samsung trailing behind TSMC in the production of chips would be an understatement, but the South Korean giant has plans to turn things around in its favor while combating the ongoing chip shortage at the same time.

During its third-quarter earnings, the company announced that it aims to triple its total chip production capabilities.

At this time, Samsung’s market share in the foundry business stands at 17%, and it is the second biggest manufacturer of semiconductors. However, its biggest rival in this industry, TSMC, stands tall with a 53% market share. With that being said, Samsung has a ton of ground to cover, and as per Nikkei Asia, it plans on reducing that disparity by tripling its chip production efforts.

Han Seung-hoon, a Samsung executive, said the following during the company’s earnings conference call. “We plan to expand our capacity about three times by 2026 to meet customers’ needs as much as possible by expanding capacity in Pyeongtaek as well as considering establishing a new plant in the U.S.”

Samsung’s efforts are not just limited to its home turf in South Korea but have extended to the U.S. too. According to a previous report, the company was close to finalizing its $17 billion chip plant in Texas, and that is not the only ambition the chip manufacturing giant has laid out.

Back in 2019, Samsung had made public its plans to invest $115 billion by 2030 to gain an edge in the mobile chips category and take on not just Qualcomm, but Apple as well.

The company also announced previously that it plans on mass producing 3nm chips in the first half of 2022. These 3nm chips will offer a 35% performance jump and 50% power savings compared to its 7nm LPP nodes, but it is not confirmed how it will perform against TSMC’s own 3nm nodes.

The efforts to triple chip production will also be beneficial to be the chip shortage situation under control, the shortage has forced TSMC to not just introduce price hikes for its next-generation wafers but also to start prioritizing partners who are not stockpiling chips.

Bringing some much-needed competition to the foundry business will encourage competition, forcing both manufacturers to push forward in bringing cutting-edge chips to the market while also giving options to companies like Apple and Qualcomm.

Relying on a single manufacturer can stifle competition, but Samsung’s goal will not reach completion in a few days, but it has plans to triple chip production by 2026.

Also read:

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More like this

Arthur Melo to Girona: Juventus Midfielder Set for Loan Move with Salary Share Agreement

Arthur Melo to Girona: Juventus Midfielder Set for Loan...

In a move that has garnered attention across European football, Arthur Melo, the Brazilian midfielder, is set...
Alvaro Morata Set to Leave Milan for Galatasaray in Shocking January Transfer

Alvaro Morata Set to Leave Milan for Galatasaray in...

In an unexpected twist in the winter transfer window, Alvaro Morata is on the verge of leaving...
Sergio Ramos Nears Monterrey Move Amid Contract Negotiations as Spanish Icon in Talks for Liga MX Switch

Sergio Ramos Nears Monterrey Move Amid Contract Negotiations as...

Real Madrid legend Sergio Ramos is reportedly in advanced discussions with Mexican club Monterrey over a free...

Asus Zenfone 12 Ultra Teaser Reveals Front Design, Features

The Zenfone 12 Ultra will make its global debut on February 6, after being teased by Asus...

Tecno Teases New Pova Series Phone with Triple Cameras

Tecno officially teases new Pova series smartphone launch. Though the actual name has not been shared, the...

LATEST NEWS

Arthur Melo to Girona: Juventus Midfielder Set for Loan Move with Salary Share Agreement

In a move that has garnered attention across European football, Arthur Melo, the Brazilian midfielder, is set to leave Juventus for Girona FC in...

Alvaro Morata Set to Leave Milan for Galatasaray in Shocking January Transfer

In an unexpected twist in the winter transfer window, Alvaro Morata is on the verge of leaving Milan for Galatasaray in a move that...

Sergio Ramos Nears Monterrey Move Amid Contract Negotiations as Spanish Icon in Talks for Liga MX Switch

Real Madrid legend Sergio Ramos is reportedly in advanced discussions with Mexican club Monterrey over a free transfer. The 38-year-old centre-back recently played for...

Asus Zenfone 12 Ultra Teaser Reveals Front Design, Features

The Zenfone 12 Ultra will make its global debut on February 6, after being teased by Asus as the successor to the Zenfone 11...

Featured