(Last Updated On: May 23, 2020)

Samsung Electronics started a sixth domestic contract chip production line, in order to make logic chips for mobile phones and computers as it hopes to stop depending on the tense memory chip sector. 

The company will be challenging its larger competitor Taiwan Semiconductor Manufacturing (TSMC) in the contract manufacturing business, where they will be competing for orders from Qualcomm and other such customers. 

In a statement, the company said, “This new production facility will expand Samsung’s manufacturing capabilities.” 

For the second half of 2021, Samsung is looking to begin producing upgraded and advanced 5-nanometre chips, by making use of extreme ultraviolet (EUV) technology, two hours away from Seoul, in the company’s plant in Pyeongtaek city.

The biggest contract chipmaker in the world, TSMC, has plans of developing a $12 billion (about Rs. 90,660 crores) factory in Arizona, USA.

Currently, Samsung runs five foundry lines in South Korea and one in the USA. 

Image by: Jamie McCall

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