Samsung huge investment plan to compete with TSMC

Samsung huge investment plan to compete with TSMC

Subsequently, it has been coming to notice that Samsung Electronics has shown its motive to invest 300 trillion won (US$231 billion). This is intended to become a semiconductor powerhouse in the fabless and foundry sectors.

Recently, on March 16, the Korean giant disclosed that it will be going to invest 300 trillion won over the next 20 years. This is to build a semiconductor cluster in Yongin, Korea, reveal by some industry sources. The company unveiled that it will imply an approach in order to widen its gap with others in the memory sector. Therefore building the Yongin cluster would help to achieve it. The company will perform its operation after other Korea-based plants in Giheung, Hwaseong, and Pyeongtaek respectively.

Samsung Electronics also have their faith that building a foundry plant in the Yongin cluster will enable the Korean chipmaker. To considerably help narrow its gap with TSMC in the foundry industry. Notably, the company became the world to begin mass-producing 3 nm transistors with an around GAA structure.

Irrespective of having such competitive technology. Samsung Electronics has gone through a hard time in order to chase TSMC. While the reason for this gap is the lack of production capacities. Therefore, experts also believe that, if the Korean semiconductor giant is able to secure additional production capacity. Then it will significantly enable us to achieve strong capabilities both in terms of quality and quantity of semiconductors.

Although, at the same time, in order to make this future strategy pay off. Samsung Electronics not only has to make an improvisation to yields by analyzing it as a chronic problem. While also working to secure big corporate customers like Apple. The same proves to be the driving force behind its rival TSMC’s growth.

Additionally, intended to move forward in technology. The Korean tech giant also disclosed a roadmap in order to introduce a 2 nm process in 2025 and a 1.4-nm process in 2027 respectively.

However, Samsung Electronics reached the 3 nm finish line first. It still requires going a long way to successfully secure more customers than TSMC. It is because of the fact that 3nm processes are still in their initial stage. Whereas corporate customers are more likely to prefer TSMC over Samsung in  4 and 5-nm chips. The same acquire the major segment in the semiconductor presently.

Apparently, doing an improvement in the packaging technology intended to safeguard semiconductors is another big challenge faced by Samsung Electronics. Since semiconductors have been considerably increased with packaging technology getting advanced. Thus, it impacts not only Samsung electronics but giants like TSMC and Intel also strategically expanding in package facilities by spending trillions of won on them.

“There is no difference between Samsung Electronics and TSMC in foundry technology, or Samsung Electronics is said to be a little ahead,” said Jang Sang-shik, head of the Trend Analysis Office at the Korea International Trade Association in Seoul. “But Samsung Electronics is lagging behind in yields, manufacturers’ trust and foundry front and back-end process services. I expect the creation of the Yongin semiconductor cluster to take Korea’s semiconductor competitiveness to the next level.”

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