The sprawling hi-tech Samsung facility in Pyeongtaek
Samsung Electronics has begun building a cutting-edge chip production line intended to help it take on Taiwan Semiconductor Manufacturing Co in the business of making silicon for external clients.
South Korea’s largest company said it’s started construction on a 5-nanometer fabrication facility in Pyeongtaek, south of Seoul, dedicated to its made-to-order foundry business, an arena TSMC dominates.
Samsung, the world’s largest maker of computer memory, smartphones and displays, in 2019 outlined its aim of spending US$116-billion to compete with TSMC and Intel in contract chip-making, making silicon for customers like Qualcomm or Nvidia.
This will enable us to break new ground while driving robust growth for Samsung’s foundry business
“This will enable us to break new ground while driving robust growth for Samsung’s foundry business,” ES Jung, head of the contract chip-making division, said in a statement.
TSMC and Samsung, through its spending plan, are the leaders in developing that process and expanding into 5nm and smaller manufacturing nodes.