SAMSUNG

South Korean giant wants to master 1.4nm process technology

South Korean company Samsung Electronics has long sought to reduce its reliance on its memory chip business. It is trying to achieve this by strengthening contract manufacturing of semiconductor components. By 2027, Samsung expects to triple its manufacturing capacity using advanced manufacturing processes as well as mastering 1.4nm process technology. By the middle of the decade, the company's customers will be able to receive 2nm products.

Corresponding plans from Samsung Electronics were announced this week. In June, the company began delivering 3nm products to its first customers, but in the future, they could include not just Qualcomm and Tesla, but AMD as well, as Samsung representatives explained during a profile briefing, according to Reuters. Most likely, the second generation of the 3nm process that Samsung will offer in 2024 will be in much higher demand, according to the company. Samsung representatives acknowledge that in terms of 5nm and 4nm lithography development, the company has lagged behind its main competitor TSMC, but in the future parity should be restored. In fact, even Samsung's first-generation 3nm products meet customer expectations. The throughput rate on Samsung's assembly line is now one of the highest in the industry.

Demand for process technology down to 5nm and below is growing rapidly, even amid significant inflationary pressures, as in the long term these components are expected to be in demand in the field of high-performance computing, artificial intelligence systems, networks 5G and 6G communications, as well as in the automotive sector. If you don't spend money on advanced lithography development now, according to Samsung representatives, in the future the semiconductor industry simply won't be able to handle the demand for flagship products.

The pace of expansion in advanced lithography manufacturing is being held back by ASML's inability to provide its customers with the required number of lithographic scanners. Samsung notes that US customers are keen to get advanced components produced locally, and from that point of view, the new facility under construction in Texas has great potential for expansion. The Taylor facility will begin operations in 2024, the company added. It is possible that 3nm components will be produced here, although nothing has been officially announced about the timing of such a migration.

mundophone