Samsung Shares Ambitious Chip Production Targets Citing Demand Tailwinds

Samsung Electronics Co, Ltd SSNLF looks to expand its advanced chips production capacity by more than 3X by 2027 to meet strong demand despite global economic headwinds.
Samsung targets the commercialization of advanced 2-nm technology chips by 2025 and 1.4-nm chips by 2027, set for high-performance computing and artificial intelligence applications.
Samsung acknowledged some progress (in raising prices) this year, reflecting costs. Samsung proposed to make the new orders after 2-3 years, leading to a minimal direct impact from the current atmosphere, Reuters reports.
Samsung began commercializing 3-nm chips in June.
The report cited analysts that Samsung had pushed advanced technology too quickly to compete with Taiwan Semiconductor Manufacturing Company Ltd TSM but had suffered from having less experience with the long-term client cooperation needed in contract manufacturing.
Samsung co-CEO Kyung Kye-Hyun acknowledged its foundry business had lagged behind TSMC's development schedule and performance in 5- and 4-nm chips. Still, customers were excited for the second version of 3-nm chips, likely for manufacture in 2024.
He noted that demand for advanced 5-nm and more delicate chips rapidly increased despite current inflationary pressures due to the long-term expansion of high-performance computing, artificial intelligence, 5G and 6G connectivity, and automotive applications.
"U.S. customers are especially interested in production in the United States, for supply chain stability," Kang said. "Our Taylor site is very large... It's a good site for expansion," he added.
Samsung is building chip production in Taylor, Texas, for operations starting in 2024.
SoftBank Group Corp (OTC: SFTBY) SFTBF founder, Chair, and CEO Masayoshi Son reportedly explored a potential partnership between Arm Ltd and Samsung.
Price Action: TSM shares traded higher by 2.22% at $70.79 in the premarket on the last check Tuesday.

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