40 Orders Have Been Received | TSMC Will Surpass SAMSUNG on 7-nm Chip Production this Year

According to "Electronic Times" Beijing time January 4 reported that TSMC is ready for this year's 7-nanometer chip production 'Win-win' Samsung Electronics, has now received more than 40 customer orders for chip foundry, covering Mobile communications, high-performance computing and artificial intelligence (AI) applications.

Both Apple Inc. and Qualcomm are big customers of TSMC, and industry sources said TSMC has received orders to produce all A12 processor chips for this year's new generation of iPhone devices.

To expand its technology leadership in Samsung, TSMC will integrate extreme ultraviolet (EUV) technology in its 7nm + process and expedite the deployment of 5nm and 3nm processes.

According to the sources, TSMC plans to start construction of Fab 18 plant in Tainan Science Park this year as a 5-nanometer process chip production base and TSMC is also planning to invest 20 billion U.S. dollars to build a 3-nanometer factory in this technology park scheduled for 2020 start.

According to the sources, TSMC's 5-nanometer process will be a continuation of the 7-nanometer process, and its applications are also targeted at mobile communications, high-performance computing, AI and machine learning. TSMC's 5-nanometer process plant is scheduled to begin trial operation in the first half of 2019.

Samsung response

On the other hand, Samsung has taken many active measures.In addition to reaching a consensus with Hwaseong City in Korea to build a 7-nanometer production line this year, Samsung is also actively negotiating new cooperation projects with customers in the United States and China.

Moreover, Samsung plans to launch a 4nm process against TSMC's 5nm process by 2020 after it has stripped its foundry service as an independent business in May 2017. Prior to this, TSMC will begin mass production in 2018 7 nanometer process, in 2019 to develop 6 nanometer, 5 nanometer process.

Samsung foundry business executives said the company is striving to capture 25% of the global foundry market in less than five years, up from less than 10% currently, but below the current 60% share of TSMC.

As TSMC has already won Apple and Qualcomm orders for 7-nanometer chip production, Samsung is reaching out to potential customers across multiple applications to expand foundry services and increase global market share, rather than focusing on high-end chips.

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