Samsung Electronics announced a very aggressive five-year development plan at the “Samsung Foundry Forum & SAFE Forum” held in Silicon Valley, California on October 3, aiming to achieve 1.4 nanometer process mass production by 2027 and attract U.S. chip buyers with its advanced technology.
At the forum, Moonsu Kang, senior vice president of Samsung Electronics, said the company’s chip foundry division, or foundry, wants to triple its revenue in 2027 compared to 2021. To achieve this goal, the business will need to make several technological leaps and make progress in the U.S. outsourced chip market.
Samsung is the world’s largest chipmaker by revenue, but its foundry business is catching up with TSMC, which leads the market with top-notch production capabilities. Samsung recently competed for orders from TSMC to Nvidia Corp. On the order, RTX 40 was beaten to produce a range of graphics cards that run on a 4 nanometer process.
Samsung executives said at the briefing that the company’s yields – the percentage of working chips per product – are now among the best in the industry. It is racing to stay at the forefront of technology. The company aims to lead the way in advanced chip manufacturing by starting volume production of second-generation 3-nanometer chips in 2024, followed by 2-nanometer chips in 2025. This will set the stage for 1.4-nanometer products two years later.
Part of Samsung’s pitch to U.S. customers is its decision to manufacture in the United States. Samsung has an existing facility in Austin, Texas, and is building one in nearby Tyler. The new plant, which will begin operations in 2024, will likely use the latest production methods, such as 3 nanometer technology.
