Samsung is among the very few smartphone companies that builds its own chipsets and now the South Korean giant has planned to become the leading semiconductor company in the world by 2030.
In line with that goal, the company has announced that it will start building a new chipset production facility in Pyeongtaek, South Korea which will be focused on manufacturing 5nm chipsets from Samsung.
The new facility will be responsible for making AI-powered (artificial intelligence), high-end smartphones, and HPC (high-performing computing) chips. The company has already started construction work which is expected to get completed by next year.
With the planned investment of around KRW 10 trillion ($8.1 billion), Samsung is looking to start production at this new facility by the second half of next year, i.e. H2 2021. The new production means that Samsung now has three such facilities in the Gyeonggi Province in South Korea, each one in Pyeongtaek, Hwaseong, and Yongin.
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Samsung is going after TSMC which is currently the world’s leading contract chip manufacturer capturing a massive 54 percent of the market share. TSMC has already started mass production of 5nm chips and is currently making Apple’s A14 chipset.
The development from Samsung comes just days after TSMC announced its new 5nm chip production line in Arizona, United States. The company is expected to spend about $12 billion between 2021 and 2029 on the project, with construction slated to begin next year.
Chinese giant Huawei is also among the leading mobile chipset makers but we’ll have to see what the future holds for the company given that TSMC has stopped taking new orders from Huawei after the U.S. government changed rules where companies making use of any of the U.S.-based company’s design or tech needs a special permission to do business with Huawei. This is also a major blow to TSMC as Huawei was the second largest client for the company after Apple.
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