“Samsung invests 11 trillion won to expand its semiconductor plant in Texas in the US… face-to-face with TSMC”

Input 2021.01.22 17:34 | Revision 2021.01.22 17:40


Samsung Electronics’ Austin semiconductor business site. /Chosun DB

Bloomberg reported on the 22nd (local time) that Samsung Electronics is considering investing more than 10 billion dollars (about 11 trillion won) to build a semiconductor plant in Austin, Texas. Earlier, when the news that Samsung Electronics purchased an additional site near the’Samsung Austin Semiconductor Plant (SAS)’, the only semiconductor plant in the United States in October last year, it was observed that it was a procedure to expand the plant.

Bloomberg said through an anonymous source, “Samsung Electronics is discussing a plan to build a semiconductor plant in Austin, and we will make it possible to produce semiconductors less than 3 nanometers (nm·1 nm is 1 billionth of a meter).” “We are aiming to operate the factory from 2023,” he said.

In October of last year, vice president of Samsung Electronics’ foundry (consignment production) division, Jae-hong Park, met with partners at the Samsung Safe Forum held online and said, “We will start mass production of 3 nanometer products by 2022.” It was predicted that Samsung Electronics would start mass-producing 3-nano products around 2022, but it was the first time that it was confirmed by an official statement by a senior executive.

Samsung Electronics has been making aggressive investments after declaring’Semiconductor Vision 2030′ that it will rise to the top of the system semiconductor market in 2030. For this, a confrontation with TSMC, the No. 1 foundry market, is inevitable.

Bloomberg analyzed that the US plant construction plan is also a measure to contain TSMC. TSMC has already announced last year that it will invest 12 billion dollars (about 13 trillion won) in Arizona by 2024 to build a 5-nano foundry fab, followed by a 3-nano semiconductor production plan.

In the semiconductor industry, nanometer is a unit used when talking about the line width of an integrated circuit. In order to increase the heat generation efficiency, productivity, and overall performance of semiconductors, the circuit line width must be reduced, so the industry has been focusing on process miniaturization. After the unit was narrowed down to less than 10 nanometers, the two-gang structure between Samsung Electronics and TSMC was formed. Both sides began mass production of 7-nano semiconductors in 2019, and mass production of 5-nanos last year.

However, Samsung replied to Bloomberg that it has not been decided yet.

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