Samsung Electronics Co., Ltd. announced on Thursday that it has begun mass producing chips with advanced 3nm technology, making it the first company in the world to do so. This announcement comes as Samsung Electronics seeks new customers to catch up to its much larger competitor TSMC in the contract chip manufacturing industry.
According to a statement released by Samsung, the newly created first-generation 3nm process is capable of reducing space by 16 percent, improving performance by 23 percent, and lowering power consumption by up to 45 percent in comparison to existing 5nm circuits.
The South Korean company did not name clients for its latest foundry technology, which supplies made-to-order chips such as mobile processors and high-performance computing chips. However, analysts said that Samsung itself and Chinese companies are expected to be among the initial customers of this technology.
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TSMC, which stands for Taiwan Semiconductor Manufacturing Company, is the most technologically advanced foundry chipmaker in the world. It also controls approximately 54 percent of the global market for contract production of chips, which are utilised by companies such as Apple and Qualcomm that do not have their own semiconductor facilities.
According to the data provider TrendForce, Samsung is a distant second with a market share of 16.3 percent. Last year, Samsung announced an investment plan that would cost 171 trillion won (approximately Rs. 10,39,500 crore), with the goal of surpassing TSMC as the leading logic chipmaker in the world by the year 2030.
According to Siyoung Choi, who is in charge of the Foundry Business at Samsung, “We will maintain aggressive innovation in competitive technological development.”
At the beginning of this year, Samsung Co-CEO Kyung Kye-hyun stated that the company’s foundry business would look for new clients in China, where it anticipates high market growth, as businesses ranging from automobile manufacturers to manufacturers of home appliance goods rush to secure capacity in order to address persistent global chip shortages.
Despite the fact that TSMC is expected to begin volume manufacturing of 2nm chips in 2025, Samsung was the first to production with 3nm chip manufacture.
According to industry observers, Samsung dominates the market for memory chips; nevertheless, the company has been outspent by frontrunner TSMC in the more broad foundry business, making it tough for Samsung to compete.
According to Kim Yang-jae, an analyst at Daol Investment & Securities, “Non-memory is different, there’s too much variation.” [Citation needed]
