This coming Thursday, the gigantic company from South Korea will begin the mass manufacture of semiconductors using an exceedingly fine engraving, one day before TSMC, the great leader of the global foundry industry. With the help of this technology, it should be feasible to improve the functionality of the components that are used in the electronics of the world.
The announcement made by Samsung Electronics on Thursday that it would begin mass production of a new generation of chips with an engraving finesse of no more than 3 nanometers was a significant symbolic victory for the company in its ongoing competition with TSMC, the leader of the semiconductor industry in Taiwan (nm). Prior to him, no one or no organization had ever accomplished this level of performance on such a broad scale.
The world's largest semiconductor manufacturers are in a constant race against one another to reduce the engraving that carries the transistors on their semiconductors. This is done in order to provide the companies that design these chips, such as Apple, Qualcomm, Intel, or Nvidia, with manufacturing solutions that are more effective than ever before. They are now being sold by the most successful market players that are employing 4nm etches in their production.
Energy saving chip
When compared to products engraved in 5 nm, the South Korean technology giant's new design, which is based on an architecture called "Gate All Around" (GAA), will, according to the company's press release, offer a reduction in energy consumption of 45 percent and an improvement in power of 23 percent. There are so many benefits that may be of interest to the big brands of smartphones, laptops, or driverless vehicles, all of which are continually producing equipment that are more effective and take up less space.
If the current world order of the foundry is not disrupted by this new technology, which continues to be largely dominated by TSMC (52.1 percent of the market), then it may be possible for Samsung Electronics to consolidate its position as a challenger (18.3 percent of the market) by attracting orders from the most advanced brands, which are eager to quickly have the new engraving. This would require that this new technology not upset the world order of the foundry. Additionally, the Taiwanese leader has mastered the 3 nm technology, but the company does not anticipate being able to begin large production until the latter part of the year 2022.
According to the South Korean publication TheElec, Qualcomm has already exercised its option on 3 nm orders placed by Samsung in order to safeguard itself against the possibility of a delay in the production of its upcoming Snapdragon 8 mobile chips by TSMC. Qualcomm has entrusted TSMC with the responsibility of manufacturing these chips. for Android devices of the highest caliber.
Giant investments
In May of this year, Samsung Electronics released a five-year investment plan of 450 trillion won (330 billion euros), the majority of which is going to be dedicated to its semiconductor foundry and design operations. This strategy is already reflecting, like TSMC, on 1 nm engraving technology. TSMC is planning to implement an investment strategy that will total 42 billion euros in 2022 for the purpose of expanding and modernizing its foundries.
These gargantuan sums should in particular make it possible to open new factories outside of Asia. This would be a response to the pressure from the great Western powers, who are all seeking to have, on their soil, production capacities for the semiconductors that will operate the entire technological landscape of the future. In May of last year, Vice President Joe Biden of the United States traveled to South Korea to visit a Samsung foundry. While there, he was briefed on the capabilities of the company's most recent 3 nm engraving. Biden is adamant about this matter pertaining to national security.