Samsung is widely recognized for its successful smartphone business. However, the company’s semiconductor manufacturing division is its primary profit driver. According to CNBC, Samsung has unveiled a comprehensive roadmap to expand its chip manufacturing business, aiming to produce the world’s most advanced mobile chips.
Samsung’s Ambitious Plans
On Wednesday, Samsung revealed its roadmap for expanding its semiconductor manufacturing business. The roadmap not only confirms Samsung’s goal of manufacturing 2nm process chips by 2025 but also offers additional insights into the company’s long-term strategy.
According to the roadmap, Samsung plans to commence mass production of the 2nm process for mobile applications in 2025. Subsequently, it intends to expand into high-performance computing in 2026 and automotive chip manufacturing in 2027. By outlining these milestones.
Understanding Nanometer Processes
To grasp the significance of Samsung’s roadmap, it is essential to comprehend the concept of nanometer processes. The nanometer process refers to the size of each transistor on a semiconductor chip. Smaller nanometer processes allow for more transistors to be fitted onto a single chip, resulting in more powerful and efficient chips.
For instance, Qualcomm’s Snapdragon 8 Gen 2 currently utilizes a 4nm process. Samsung anticipates the need for even more advanced chips in the future. By pushing the boundaries of nanometer processes, Samsung aims to create chips capable of delivering superior performance and energy efficiency.
Expanding into High-Performance Computing
Samsung’s roadmap also highlights its plans to enter the high-performance computing (HPC) market. High-performance computing involves the development of chips for data centers that handle the training and deployment of artificial intelligence (AI) applications. As AI continues to gain prominence across various industries, Samsung recognizes the immense growth potential associated with this technology.
By expanding into HPC, Samsung aims to capitalize on the increasing demand for chips that can support AI-driven applications. This strategic move emphasizes the company’s commitment to staying at the forefront of technological advancements and ensuring its relevance in a rapidly evolving digital landscape.
Catching Up to TSMC
Samsung’s roadmap can be seen as a strategic response to the dominance of TSMC (Taiwan Semiconductor Manufacturing Company), the world’s leading contract manufacturer of semiconductors. TSMC currently holds the majority share in global semiconductor foundry revenue. In the first quarter of 2023, TSMC reportedly accounted for 59% of global semiconductor foundry revenue, while Samsung only represented 13%, according to Counterpoint Research.
Future Prospects: 1.4nm Process and Expanded Manufacturing Capacity
Looking ahead, Samsung has even more ambitious plans beyond the 2nm process. The company aims to develop a 1.4nm process by 2027, demonstrating its commitment to pushing the boundaries of semiconductor technology.
Moreover, Samsung intends to expand its chip manufacturing capacity by establishing facilities in Pyeongtaek, South Korea, and Taylor, Texas. These expansions will enhance Samsung’s production capabilities, enabling it to meet the growing demand for advanced semiconductor chips.
Samsung’s roadmap for expanding its chip manufacturing business underscores the company’s commitment to innovation and technological advancement. By striving to create the world’s most advanced mobile chips, Samsung aims to secure a strong position in the semiconductor industry and challenge TSMC’s dominance.