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Samsung planning to site a $10-billion 3nm chip factory in Austin, Texas

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Global tech powerhouse, Samsung is planning to invest over $10 billion to build a new chip factory in Austin, Texas, as it pursues a massive expansion scheme to fill the manufacturing gap in demand for chips, which Samsung’s existing facility is unable to cope with. Some big customers of Samsung are Qualcomm, Intel

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, and Tesla, among others, and their demand quantum has increased in the past few months.Samsung

In addition, the new factory is expected to produce advanced chips like the 3nm within a short period, which would give Samsung some leverage as a global leader in mobile chip fabrication, as it seeks to upend its major competitor TSMC. Samsung got some boost after Qualcomm switched back to Samsung for the new Snapdragon 888, a sharp departure from the Snapdragon 855 and Snapdragon 865 which were both manufactured by TSMC.

The advanced technology and high-end 3nm chips could enhance overall performance by up to 35% performance increase, a massive 50% reduction in power consumption, and a 45% reduction in size, when compared with 7nm chips, according to Samsung.

A total of $116 billion is earmarked for the completion of the factory over the course of its operation as Samsung pursues its goal to become the biggest player in the chip-making segment of the tech ecosystem.

The chip manufacturing industry, last month experienced a huge disequilibrium in the demand-supply balance as most suppliers could not meet the demands of major customers, leading to the temporary closure of some car factories as a result of the absence of important chip components.

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Therefore, Samsung’s plans for expansion would serve as a huge boost to the industry. Samsung is a global leader in telecommunications, home electronics, and various segments of the technological spectrum.

(source)

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