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Samsung Announces Massive Plan to Make the Chip Shortage Just a Bad Memory

Samsung investing big in chip expansion 6 photos
Photo: Samsung
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Samsung isn’t the world’s number one chipmaker, but on the other hand, it’s one of the biggest players in the industry, as its chips are being used in a wide variety of products in so many industry sectors out there.
As a result, the South Korean company is now announcing several changes to its foundry unit specifically to help boost production and tackle the chip shortage at a time when uncertainty still looms over the entire world.

First and foremost, the firm says it wants to launch a 2nm design in 2025, which should allow for more energy-efficient chips with a substantial boost in performance. The strategy also includes upgrading to 1.4nm chips two years later, so in about 5 years, we should be seeing a complete chip revolution in many industries, including computers and smart devices.

Samsung wants to start producing 14nm non-volatile memory, also known as eNVM, at some point in 2024. The eNVM memory is most often used in cars and helps compute operations faster, and you can imagine how important this is in a self-driving vehicle, for instance. The company also believes that it should be able to upgrade its production lines to 8nm by the end of the decade.

And unsurprisingly, the company is also planning to take full advantage of the CHIPS Act in the United States, so it wants to finish the construction of the new factory in Taylor, Texas, as soon as possible. This should allow Samsung to boost its production in the United States by no less than three times, according to its estimates, with the new target to be reached by 2027.

At the end of the day, it’s pretty clear that Samsung is trying to overhaul its foundry business in a way that would turn it into one of its most profitable operations. The competition in this market, however, is getting fiercer, especially as most companies are currently investing in capacity, given the constrained global inventory and the strong demand.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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