South Korean technology multinational Samsung is reportedly considering spending over 10 billion dollars to build an advanced new logic chip-making plant in Austin, Texas, USA. This new plant might be capable of making processors with 3nm advanced architecture.
As per The Verge, this would be Samsung's third worldwide plant to use extreme ultraviolet lithography technology in its chip production. If all goes as per plans then construction at the plant could begin this year, with operations commencing as early as 2023.
The new US-based Samsung fabrication plant could provide the company with a strong foothold in getting new contracts from US customers amidst the ongoing trade tensions between the US and China. This move from Samsung would also bring it into closer competition with TSMC, which manufactures chips for Apple, among others, including the 5nm processors found inside Apple's latest iPhones and Macs.
As per The Verge, Samsung plans to invest one hundred sixteen billion dollars over the next decade into non-memory chips, which will be produced in Austin and are currently thought to be limited to lesser advanced 14-nanometer process nodes.
Samsung hopes to begin offering chips based on the newer 3nm processor node technology in 2022. While the South Korean giant's strength has traditionally been in memory chips, the market for logic devices like smartphones and computer processors is more profitable.
Samsung's plans for the plant are reportedly still in their preliminary stages, but some initial steps have already been taken. The company still faces a big challenge competing with TSMC, which plans to invest $28 billion this year alone. In contrast, Samsung's semiconductor business invested $26 billion last year in capital expenditure, and Bloomberg notes this was mainly in support of its memory business.
( With inputs from ANI )
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