Samsung Electronics Builds Sixth Home Contract Chip-Making Line

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

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

“This new manufacturing facility will develop Samsung’s manufacturing capabilities,” the corporate stated in a press release on Thursday.

Samsung is focusing on the second half of subsequent yr to begin producing superior 5 nanometre chips, utilizing excessive ultraviolet (EUV) expertise, 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 slim the hole with TSMC, because it nonetheless lags behind TSMC within the contract chip making market,” stated 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 stated final week.

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

Final yr, Samsung stated it deliberate to speculate KRW 133 trillion (roughly Rs. 8.16 lakh crores) in non-memory chips via 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 stated he aimed to nurture the non-memory business in his agenda to foster financial development.

South Korea’s chip exports for the primary 20 days of Could soared 13.Four %, whereas exports of cellular units and automobiles collapsed 11.2 % and 58.6 % respectively, customs information confirmed.

© Thomson Reuters 2020

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