Samsung Electronics said on Tuesday it will more than triple its production of advanced microchips by 2027 to match rising global demand.
The South Korean firm will expand manufacturing for its advanced 2-nanometre technology chips and 1.4-nanometre chips, used for artificial intelligence, 5G, and high-performance computing.
New deals are being made despite the global economic downturn, Samsung Electronics’ foundry business executive vice president Moonsoo Kang said.
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Samsung is world’s second largest chipmaker behind Taiwan Semiconductor Manufacturing Company Ltd (TSMC).
Both firms are big suppliers to western markets, and are involved in the ‘Chip 4’ group, an economic alliance between the US, Japan, Taiwan, South Korea, which aims to strengthen microchip supply chains.
5G Demand
Demand for advanced 5-nanometre and finer chips is rapidly increasing due to long-term expansion of high-performance computing, artificial intelligence, 5G and 6G connectivity and automotive applications.
“US customers are especially interested in production in the United States, for supply chain stability,” Kang added. “Our Taylor site is very large… It’s a good site for expansion,” he said.
Samsung is currently building chip production in Taylor, Texas for operations starting in 2024.
- Reuters, with additional editing from Alfie Habershon
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