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Samsung prepares to expand and modernize its chip production in the United States
It is generally accepted that TSMC’s decision to start building a plant in Arizona is the result of the Donald Trump administration, which sought to make America “great again” even in the technological field. Samsung has a Texas facility and is looking to expand and modernize to keep up with TSMC.
Image source: Samsung Electronics
In 1997, Samsung Electronics began production of memory chips at an enterprise in Austin, USA. Over time, it was redesigned for contract manufacturing of chips, Samsung had to spend about $ 17 billion on the modernization of the enterprise, but at the moment it is capable of producing customer products only using 14nm technology, although Samsung’s Korean enterprises are already ready to offer 5nm products. There is a growing need for another modernization of an enterprise in Texas, and third-party experts believe that another $ 10 billion will be spent on these purposes.
For Samsung, which intends to become the largest contract manufacturer of chips by 2030, this is not such a large amount, because the plan for a decade implies a specialized investment of $ 121 billion. According to the Nikkei Asian Review, Samsung Electronics acquired a 440,000 square meter plot of land adjacent to the company in Texas, and has already submitted an application to change the intended use of this territory. New production buildings are expected to appear here with more modern lithographic equipment to serve the needs of American customers. The new site will increase the area of the enterprise by about 40%. Samsung has not yet disclosed the timing of the construction of new facilities, preferring to reasonably wait for Joseph Biden to take over as President of the United States.
The TSMC facility in Arizona will begin construction next year, it is expected to spend at least $ 12 billion on its construction, and it will begin to produce the first products in 2024 – using 5nm technology, as expected. In the global market of contractual services, TSMC controls about 54%, Samsung accounts for no more than 19%, but the South Korean company is going to actively increase this figure. Texas Facility Modernization Should Win the Favor of American Customers. By the way, this does not prevent the Korean giant from simultaneously expanding production in Chinese Xi’an, so the company also does not forget about its interests in China.