Samsung on Tuesday outlined a plan to ramp up its production of advanced semiconductors, aiming to mass-produce 1.4 nanometer (nm) chips by 2027. The tech giant is scrambling to meet demand for chips from for high performance computing, AI, 5G, 6G and automotive applications. Earlier this year, Samsung began mass-producing chips using its 3-nanometer process node, its most advanced technology yet for custom chip production. It plans to introduce a 2nm process in 2025.
The Korean giant also plans to more than triple its production capacity for advanced nodes by 2027 compared to this year. By 2027, Samsung expects non-mobile applications — like supercomputing, automotive, and 5G applications — to make up more than half of its foundry portfolio. Samsung also plans to improve support for its 3nm process based on gate-all-around (GAA) technology for HPC and mobile chips. The company also plans to diversify into the specialized 4nm process for HPC and automotive applications.
Last August, Samsung announced an investment of around $15 billion by 2028 to build a new advanced chip research complex in South Korea. The global chip shortage of the past two years has been a blessing for Samsung’s chip division as customers have stockpiled. This division accounted for two-thirds of the company’s operating profit in the second quarter of this year.
Samsung had at the time recorded its best earnings for the quarter thanks to the improvement of the rates of return in this now strategic area of the foundry, or the production of chips in subcontracting.