Samsung to Invest $3.8 Billion to Increase 4nm Production in an Effort to Come Closer to TSMC’s Share

With TSMC expected to commence mass production of its 3nm process next month, Samsung is taking the opportunity to reduce its losses by attempting to increase 4nm chip production. To make this possible, one report claims that the Korean manufacturer aims to invest around $3.8 billion in its facilities.

Samsung to Reportedly Increase Capacity to 20,000 Wafers per Month in the Fourth Quarter

With Samsung already supplying 3nm GAA chips to customers in a limited capacity, this may have been the opportune time to increase 4nm production and get back its lost clientele. According to Economic News Daily, the investment amounts to 5 trillion won, and with this injection, Samsung will reportedly attempt to grab orders away from TSMC given to the latter by Qualcomm, Supermicro, Huida, and other big names.

The manufacturer aims to increase wafer production to 20,000 every month in the fourth quarter this year, but the company’s past inefficiencies may have already done the required damage. For instance, Qualcomm, who launched the Snapdragon 8 Gen 1 under Samsung’s 4nm process, is now sticking with TSMC for both the Snapdragon 8 Plus Gen 1 and the upcoming Snapdragon 8 Gen 2.

Samsung’s only saving grace would be to offer a lower price to Qualcomm to mass produce future chipsets, and that decision too might be a gamble given that TSMC’s foundry has already proven to show positive results. So far, Google appears to stick with Samsung to mass produce the second-generation Tensor SoC on the 4nm process. Unfortunately, the advertising giant ships significantly fewer smartphones than devices powered by Snapdragon chipsets, so the advantage given to Samsung from Google’s orders would be negligible.

According to research institutions, Samsung’s advanced manufacturing capacity is painfully lagging behind TSMC’s, with the Korean behemoth producing only one-fifth of what its competitor churns out. Both Samsung and TSMC declined to comment on their plans, but it will be interesting to see which firm retains the top position in the next couple of years.

The post Samsung to Invest $3.8 Billion to Increase 4nm Production in an Effort to Come Closer to TSMC’s Share by Omar Sohail appeared first on Wccftech.