Samsung has $ 80 billion poised to keep up Intel and TSMC in semiconductor manufacturing
The semiconductor crisis It is putting in check practically all the industries that depend on integrated circuits to maintain their production volume, such as automotive, household appliances or personal computing, among many others. However, for semiconductor manufacturers represents an opportunity. The opportunity to grow in this market knowing that any investment they make will pay off relatively quickly.
The movements of the largest producers of integrated circuits on the planet have not been long in coming. TSMC announced in the middle of last April that will invest no less than $ 100 billion during the next three years in new facilities with the purpose of reinforcing its production capacity. Currently this Taiwanese company is the largest semiconductor manufacturer in the world, so it is understandable that it is willing to invest as large a figure as this to maintain its competitiveness.
Intel plans to make a similar move, although its investment is not as daunting as TSMC’s. Pat Gelsinger, the new CEO of this company, made it known at the end of last March to be spent $ 20 billion to set up two new semiconductor factories on its campus in the town of Ocotillo, Arizona (United States). In addition, they have created a new division known as IFS (Intel Foundry Services) that will not only be responsible for the production of chips with x86-64 architecture, but also ARM and RISC-V.
Samsung does not want to stay off the hook of Intel and TSMC
This situation has caused Samsung to also move tab. And it is understandable when we bear in mind that TSMC and Intel are two of its biggest competitors in the semiconductor market. This company will invest $ 17 billion in the construction of a new integrated circuit factory that will be located in the United States.
Samsung will invest 17 billion dollars in the construction of a semiconductor factory in the United States
The legal process facing Lee Jae-yong, the vice president of Samsung, has led to the election is delayed of the final location of these facilities, but, apparently, the competing states to host them are Texas, Arizona and New York.
However, the choice of the United States as the destination for its new semiconductor factory is not accidental. A company with the size that Samsung has does not stitch without thread, and this move shows its intention to fight with intel in your own market.
An 80 billion dollar box ready to invest
One of the most disruptive decisions Intel has made to strengthen its competitiveness as a semiconductor manufacturer is to start producing integrated circuits for third parties. This is essentially what TSMC and GlobalFoundries do, and Samsung, although it manufactures itself in large quantities, also works for other companies. In fact, it is currently producing the family of graphics processors for NVIDIA on its 8nm node. GeForce RTX 30.
The reason why Samsung has decided to build its new semiconductor factory in the United States, and not in South Korea, or, perhaps, in the European Union, presumably responds to the need to strengthen its position in the American market, especially after of the move that Intel has announced. However, according to The Wall Street Journal this company has a net cash of at least $ 80 billion, so it is likely that over the next few months it will unveil new investments aimed at strengthening its position in the integrated circuit manufacturing industry.
Cover Image | TSMC
Via | The Wall Street Journal