Samsung is building a second 5nm factory in South Korea

Forward-seeking: Samsung is the world wide leader in the memory chip enterprise, but it even now has some catching up to do when it comes to agreement chip-producing, presently dominated by TSMC. To that stop, the South Korean tech big is applying a multi-year program to build more producing ability.

Samsung has talked a large amount about its ambitions about building extra producing ability for future generation silicon, the two for its possess custom made chips as nicely as serving the requires of others like Apple, Google, Nvidia, Qualcomm, and Amazon. The program announced at the Foundry Discussion board will acquire 10 many years to finish and will call for $116 billion in funding as nicely as a large amount of engineering talent.

Not long ago, the South Korean tech big started out construction on its second 5nm producing facility in Pyeongtaek, a town in the Gyeonggi Province, south of Seoul. The factory will be outfitted to deliver chips working with an serious ultraviolet lithography (EUV) system which is critical in competing with TSMC for the produced-to-buy foundry enterprise.

Samsung states most of the new factory’s output will very likely go towards processors, 5G modems, as nicely as FPGAs and ASICs for equipment finding out programs. As for when it will be capable to acquire orders, that could be as quickly as the second half of 2021, exact as the $17 billion Hwaseong facility. This would also coincide with Apple’s rumored ideas to introduce ARM-based mostly Macs which are reported to element 5nm chips, as nicely as Nvidia’s mysterious Hopper-based mostly GPUs.

That usually means Samsung will have 7 factories devoted to agreement chip producing, six in South Korea and a person in Austin, Texas. The Hwaseong facility will start out producing 5nm chips someday in the second half of this year.

As for TSMC, the business is also on track to deliver its initially 5nm chips in the second half of 2020, with 3nm getting pushed back again to late 2022, exact as Samsung. The Taiwan-based mostly chipmaker is also investing billions into building a US factory, but will quickly drop Huawei, which is between its most significant consumers as a result of new US export regulations.

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