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Samsung and TSMC Invest in Most Advanced Chip Factories in Home Countries

Jakarta

Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics have one thing in common, namely that they both intensively invest in the chip industry in various countries, but the most sophisticated chip factories are maintained in their home countries.

For example, Samsung, the second largest chip manufacturer in the world, plans to invest around USD 371 trillion until 2047 in a “megacluster” semiconductor project in Seoul, South Korea, which was revealed by the South Korean government in mid-January 2024.

The facility is expected to be focused on producing their most advanced chips using the 2nm process, as quoted by detikINET from the South China Morning Post, Monday (5/2/2024).

A few days after the announcement of the megacluster project, TSMC chairman Mark Liu said they planned to build a new factory for 2nm chips in the Hsinchu and Kaohsiung science parks, Taiwan.

TSMC is currently waiting for approval from the government to build a 2nm chip factory in Taichung. Both Samsung and TSMC are targeting mass production of 2nm chips in 2025.

These two companies are both pushing for domestic investment after facing various challenges to build factories in the United States – which is currently intensifying local chip production, including through various incentives offered.

Both Samsung and TSMC are strong candidates to receive billions of dollars in subsidies from the US regulated in the US Chips and Science Act. The amount of subsidies provided by the US government reached USD 53 billion and was carried out to boost chip production in the US.

TSMC is currently building two factories in Arizona, USA, which were initially expected to be able to mass produce 4nm chips starting in 2024, and 3nm chips in 2026. Meanwhile, Samsung has started building a factory worth USD 17 billion in Texas since 2021, and is expected to be able to produce 4nm chips. .

However, both of them have now agreed to postpone their production schedule. For example, Samsung is delaying production in Texas from this year to 2025 because of delayed subsidies from the US government.

(asj/asj)

2024-02-05 05:45:38
#reason #Samsung #TSMCs #advanced #chip #factories #Korea #Taiwan

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