Samsung Electronics Invests $ 116 Billion to Reach TSMC

Samsung escalates the chip war with TSMC after announcing a $ 116 billion investment to catch up with the Taiwanese giant. The Japanese company will begin mass-producing 3nm chips by 2022 , marking the first time that Samsung has revealed its plans with this node.

Samsung’s plan is to remove TSMC from its privileged position by becoming the main supplier to companies like Apple and AMD, which are currently in the hands of the Taiwanese company.

Jay Y Lee, president of Samsung, wants the company to be the leader in 5G network and chip manufacturing to fuel its next phase of growth. To be honest, Samsung is not an outsider in chipmaking: The company was Apple’s first maker of A-series iPhone processors.

Anyway, it is not going to be easy. Until last year, TSMC controlled more than half of the contract chip manufacturing market, while Samsung had just 18% of it .

Samsung seeks to expand its multi-million dollar business

Samsung is currently the world’s largest manufacturer of computer memory and displays, but now it also wants to be dominant in a chip industry of $ 250 billion . This market is expected to see a further rise thanks to developments in artificial intelligence and 5G.

Samsung already has its main 5nm production lines busy for the next few years, a company executive said. “In recent months, Nvidia and IBM are among those who turned to Samsung for some of their chip manufacturing needs, while Qualcomm awarded the company an $ 858 million contract to build its flagship mobile processors.”

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The war for 3nm chips is coming between Samsung and TSMC. Will the Taiwanese continue to dominate the market?

Source: Bloomberg