Samsung Electronics Builds Sixth Home Contract Chip-Making Line

Samsung Electronics Builds Sixth Home Contract Chip-Making Line

Samsung Electronics has begun work on a sixth home contract chip manufacturing line, the corporate mentioned on Thursday, to make logic chips for cell phones and computer systems because it seems to chop reliance on the risky reminiscence chip sector.

The South Korean agency is taking over larger rival Taiwan Semiconductor Manufacturing (TSMC) within the contract manufacturing enterprise, the place it competes for orders from clients resembling Qualcomm.

“This new manufacturing facility will broaden Samsung’s manufacturing capabilities,” the corporate mentioned in an announcement on Thursday.

Samsung is focusing on the second half of subsequent 12 months to begin producing superior 5 nanometre chips, utilizing excessive ultraviolet (EUV) know-how, on the added line in its plant in Pyeongtaek metropolis, inside a two-hour drive of the capital, Seoul.

“That is Samsung’s effort to slender the hole with TSMC, because it nonetheless lags behind TSMC within the contract chip making market,” mentioned Park Sung-soon, an analyst at Cape Funding & Securities.

TSMC, the world’s greatest contract chipmaker, plans to construct a $12 billion (roughly Rs. 90,660 crores) manufacturing unit within the US state of Arizona, it mentioned final week.

Samsung now operates 5 foundry strains in South Korea and one in america.

Final 12 months, Samsung mentioned it deliberate to speculate KRW 133 trillion (roughly Rs. 8.16 lakh crores) in non-memory chips by 2030, comprising KRW 73 trillion (roughly Rs. 4.48 lakh crores) gained for home R&D and KRW 60 trillion (roughly Rs. 3.68 lakh crores) for manufacturing infrastructure.

This month, President Moon Jae-in mentioned he aimed to nurture the non-memory business in his agenda to foster financial progress.

South Korea’s chip exports for the primary 20 days of Might soared 13.Four p.c, whereas exports of cell gadgets and vehicles collapsed 11.2 p.c and 58.6 p.c respectively, customs information confirmed.

© Thomson Reuters 2020

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