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Samsung Electronics starts work on 6th contract chip production

Samsung Electronics starts work on 6th contract chip production
Samsung Electronics starts work on 6th contract chip production
  • The South Korean company may start production of sophisticated 5 nanometre chips, propelled by extreme ultraviolet (EUV) technology.
     
  • While exports of cars and mobile devices plummeted 58.6% and 11.2% respectively, chip exports surged 13.4% for the first 20 days of May

In what looks like an audacious step to reduce the dependence on the volatile memory chip landscape, Samsung Electronics has commenced work on sixth domestics contract chip production line. Reportedly, the expansion of the product portfolio will help the company make logic chips meant for computers and mobile phones.

In the contract manufacturing business, the company has taken head on against its competitors such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC).

The South Korean company expects this step to play an invaluable role in its endeavor towards the expansion of manufacturing capabilities portfolio.

Sources acquainted with the update claim that the company may start production of sophisticated 5 nanometre chips, propelled by extreme ultraviolet (EUV) technology.

The company believes the product portfolio expansion will help them come close to TSMC in the contract chip making industry. According to reports, the biggest contract chipmaker in the world TSMC contemplates building a US$12 bn factory in Arizona.

Samsung is said to have operated five foundry lines in South Korea and the other in the U.S. In 2019, the company contemplated infusing $107.97 billion (133 trillion won) in non-memory chips till 2030. The investment will apparently translate into 60 trillion won for production infrastructure and 73 trillion won for domestic R&D.

President Moon Jae-in is quoted to have stressed on nurturing the non-memory industry to bolster economic growth.

As per sources familiar with the knowledge of the matter, while exports of cars and mobile devices plummeted 58.6% and 11.2% respectively, chip exports surged 13.4% for the first 20 days of May, according to reports.

Source credit:

https://in.reuters.com/article/us-samsung-electronics-foundry/samsung-electronics-builds-sixth-domestic-contract-chip-making-line-idINKBN22X06F

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