Semiconductor chips: Samsung launches work on its new research center
The war for control of the semiconductor market promises to be epic. With the entry into the sector of a player like Intel, which has great ambitions, traditional firms like TSMC and Samsung have every interest in not resting on their laurels. Especially since Intel will be able to benefit from the CHIPS and Science Act recently signed by President Biden to boost its production.
Aware of this, the Taiwanese manufacturer TSMC announced several months earlier that it wanted to invest nearly 44 billion dollars in 2022 to continue to develop its industry. This is in reaction to the similar plan valued at 37.7 billion dollars adopted by its rival Samsung. Speaking of the strategy of the South Korean firm, it involves the construction of a new research and development facility, the construction of which was launched today.
A new research and development facility planned for 2028
Samsung has therefore officially launched the work of its new research center which will lead the future innovations of the South Korean firm in the field of semiconductor chips. The launch was marked with a white stone by an official ceremony organized on August 19, 2022.
It was attended by all Samsung executives, including Lee Jae-Yong, vice president of Samsung Electronics. This is also Mr. Lee’s first official trip since the presidency of his country decided to grant him a pardon for the acts of corruption with which he is accused.
The new research and development complex will be built at the firm’s Giheung campus. It is located in Yongin in the province of Gyeonggi in South Korea and should cover an area of 109,000 square meters. It will serve as a research base for Samsung in semiconductor R&D areas such as fabless semiconductor system design, foundry and memory. Its total cost is estimated at nearly $15 billion.
The new facility is not expected to be operational until 2028. However, its R&D line dedicated to semiconductors will start operations from 2025.
Samsung decides to go back to basics
The choice made by the South Korean firm to install its new complex on its Giheung campus is not at all trivial. This one carries with it a very big symbol since it is where the adventure began for Samsung. This is the place where the company’s first semiconductor chips were manufactured more than 40 years ago.
Looking back at how far Samsung’s chip division has come, one can only say that the Giheung Campus has contributed to the company’s success. This division of the multinational’s activities has been very successful in recent years. Second-quarter 2022 results revealed that nearly 66% of Samsung’s operating profit comes from its foundry.
Interesting results that could be more impressive if Samsung had not lost customers during the same period due to performance and energy efficiency concerns. A handicap that the company has tried to correct on its 3 nm chips that it began to mass produce a few weeks ago.