Samsung pledges $100 billion in fight for logic IC leadership
That will be by investment in both System LSI chips and in Samsung Foundry, which makes chips for other companies. The move will be seen as increasing its competition with the likes of Intel, Qualcomm and with the largest foundry, Taiwan Semiconductor Manufacturing Co. Ltd.
Samsung said its investment will comprise 73 trillion won for domestic R&D and 60 trillion won for production infrastructure. In the first category Samsung plans to create 15,000 R&D jobs.
Samsung has been the largest chip manufacturer in the world but this is mainly due to its position in DRAM and NAND flash memory chip production, the value of which is dropping steeply in 2019. As a result Intel could have already re-taken Samsung’s crown (see Intel tipped to retake chip crown).
The memory price and market falls are partly due to oversupply by established memory manufacturers. However, with the prospect that state-financed Chinese competitors could enter the market and begin to take market share it is clear that logic ICs represent the commercial high ground.
Next: Following SK Hynix
Samsung has followed local rival SK Hynix in making a long-term pledge on semiconductor investment (see SK Hynix plans to invest $100 billion in fabs). In February of this year SK Hynix was reported said it plans to invest 120 trillion won (about $107 billion) to build four wafer fabs at a site in Yongin, 40 kilometers south of Seoul. That money is due to be spent between 2022 and 2032.
In terms of manufacturing process technology Samsung is close behind the world leader in chip manufacturing, TSMC. Both companies are in production at the nominal 7nm node and engaging with customers at 5nm. Both have also left Intel behind as it experienced problems with the introduction of its 10nm node.
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News articles:
Intel tipped to retake chip crown
SK Hynix plans to invest $100 billion in fabs
Samsung to invest $291 million in Texas
Samsung wants quarter of foundry market
Samsung to introduce nanosheet transistors in 3nm node
Samsung boasts 6nm customer tape-out, about to sample 5nm FinFETs
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