Everyone knows the chip market situation: shortages, shortages and again shortages. But Samsung has a plan. Very bold.
Samsung is currently the second chip supplier in the world after Taiwan’s TSMC, accounting for approx 17 percent supply. Theoretically, not so much, if we look at the fragmentation of this industry in further positions, but it is the Koreans who answer, among others, for Nvidia GeForce RTX 30 graphics cards or nearly one in five smartphones.
At the same time, the saga under the banner of problems with the supply of silicon systems continues. Not only the technology industry is suffering, but also automotive. Commodity prices reach dizzying ceilings, delivery times are mercilessly prolonged, and some have even had to temporarily suspend production. Like Skoda in October.
Samsung, however, has a plan to overcome the difficulties
Business will invest $ 17 billion in a state-of-the-art manufacturing complex in Taylor, Texas, announced Kinam Kim, vice president and general manager of Samsung Electronics Device Solutions Division.
The plans are extremely bold, because the construction of the plant is to start in the first weeks of 2022 and end in the second half of 2024. Let us emphasize that the plant is extremely modern, enabling the production of chips in class 3 nm lithographic process.
The complex is to cover an area of at least 5 million sq m and offer jobs for no less than 2,000 sq m. Americans, including highly specialized personnel.
Kim is convinced that the new fab will do two things, not only delivering the necessary volumes, but also improving logistics. Being located in the USA, it has expedite delivery for entities such as Apple or Qualcomm. Of course, the company thus implies that the position of the runner-up does not satisfy it and that it intends to attack. And there is something to fight for.
According to press reports, Samsung will be responsible for the new flagship Qualcomm chip, the model Snapdragon 8 Gen1. It will also prepare the second generation Tensor systems for smartphones from the Pixel 7 family. All the time, it is also bound by a contract with Nvidia. So he has where to delegate resources.
Photo source: Unsplash (Babak)
Text source: Samsung, ed. own