While TSMC is expected to begin mass production of its 3nm process next month, Samsung is taking the opportunity to cut its losses by attempting to ramp up production of 4nm chips. To make this possible, a report claims that the Korean automaker aims to invest around $3.8 billion in its facilities.
Samsung would increase its capacity to 20,000 wafers per month in the fourth quarter
Samsung is already supplying 3nm GAA chips to its customers in a limited capacity, so now might be the time to ramp up 4nm production and recoup its lost customer base. According to Economic News Daily, the investment amounts to 5 trillion won, and with this injection, Samsung would try to recover the TSMC orders given to it by Qualcomm, Supermicro, Huida and other big names.
The manufacturer aims to increase wafer production to 20,000 each month in the fourth quarter of this year, but the company’s past inefficiencies may have already done the necessary damage. For example, Qualcomm, which launched the Snapdragon 8 Gen 1 under Samsung’s 4nm process, is now sticking with TSMC for the Snapdragon 8 Plus Gen 1 and the upcoming Snapdragon 8 Gen 2.
Samsung’s only saving grace would be to offer a lower price to Qualcomm to mass-produce future chipsets, and that move could also be a gamble given that TSMC’s foundry has already shown positive results. So far, Google seems to be sticking with Samsung to mass-produce the second-generation Tensor SoC on the 4nm process. Unfortunately, the ad giant ships significantly fewer smartphones than devices powered by Snapdragon chipsets, so the advantage given to Samsung by Google orders would be negligible.
Samsung’s advanced manufacturing capacity lags painfully behind that of TSMC, with the Korean giant producing only a fifth of what its competitor produces, according to research institutes. Both Samsung and TSMC declined to comment on their plans, but it will be interesting to see which company maintains the top spot over the next two years.
Source of information: Economic News Daily
