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Samsung Is Reportedly Building Third Chip Manufacturing Plant Next Month, Possibly to Receive Snapdragon 875, X60 Orders Again

Aug 10, 2020 03:47 EDT
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In an attempt to catch up to TSMC and its 5nm chip-development goals, Samsung had earlier announced that it too would commence mass production of silicon made on the 5nm architecture. Unfortunately, a previous report mentioned Samsung was facing production difficulties for the alleged Snapdragon 875G, with the Korean giant rumored to lose out on all Qualcomm orders to TSMC. However, Samsung doesn’t appear to have given up as it’s expected to start construction on a brand new chip manufacturing plant next month.

Samsung Reportedly Investing Approximately $25.2 Billion for the Completion of Its Third Chip-Making Plant

According to the latest news, the third chip manufacturing plant’s land preparation has been taking place since June in Pyeongtaek, South Korea. However, sources stated that official building construction will start in September, with Samsung reportedly wanting to build the Pyeongtaek Line 3 (P3) much earlier than planned and hopes that government authorities will grant the company a permit as swiftly as possible.

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With Samsung expected to invest around $25.2 billion on the P3 plant, it’s expected to be the company’s biggest fabrication plant in Pyeongtaek. In addition, Samsung wants to construct a total of six chip-making factories in the Pyeongtaek area. The P1 chip construction plant is currently operational, while the P2 facility is partially functional, but is expected to run at full capacity starting next year.

As for the P3 facility, the mass production of chips could reach fully capacity in 2023. While it’s not confirmed what technology Samsung aims to use at the P3 plant, it’s likely the 5nm EUV node. Ramping up construction will mean Qualcomm might give Samsung a bulk of the orders once again, splitting them with TSMC to maximize shipments of both its upcoming Snapdragon 875 and Snapdragon 875G chipsets.

Samsung is also said to skip the 4nm node completely and will instead focus on 3nm instead so it’s possible this P3 plant is intended for this purpose as well. Hopefully, the company will be able to cover up its losses and is able to reduce the progress gap with TSMC. We’ll find out how well Samsung has done in the coming months, so stay tuned.

News Source: Yonhap

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