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While future as a supplier is uncertain, Samsung looks to give itself an edge in process

Other than Intel Corp. (INTC), the company perhaps investing the most in chipmaking research and development is Samsung Electronics Comp., Ltd. (KSC:005930).  Perhaps that's because Samsung -- like Intel -- actually manufactures the chips it sells, a rarity in today's market.  And like Intel, Samsung is willing to spend extra to try to gain an edge over competitors who source to third-party chip fabricators.

Samsung announced, according to Reuters, that it will build a new chip line for 300 mm wafers built on 20 nm and 14 nm processes.  The cost is estimated to be $1.9B USD, a pretty big chunk of change from Samsung's large research budget.

A location for the new line has not been announced, but it's quite possible that it could be added on the company's Texas property, which currently produces the chips found in nearly all of the smartphones sold by the world's top two smartphone makers -- Samsung and Apple, Inc. (AAPL).

Samsung smartphone chip wafer
Samsung is investing billions to improve its chipmaking. [Image Source: BSN]

Gartner, Inc. (IT), a market research company, estimates that orders of smartphone chips will soar from $23B USD in 2011 to $59B USD by 2016.  Samsung looks poised to vie with Intel for dominance in this market, thanks to process advantages that third-party fabs with smaller budgets -- such as Taiwan Semiconductor Manufacturing Comp., Ltd. (TPE:2330) don't have.

Samsung also looks to continue to dominate the market for memory and storage chips.  The DRAM line -- perhaps the last profitable one in the world -- will look to add process updates to continue to accomodate the thirst for lower power designs.  Samsung is also building in China a new plant to produce bleeding edge NAND flash storage chips, which will cost 4-5T won ($3.4-$4.2B USD) to complete.

Timeframes for the new processor and NAND lines have not been announced.

Source: Reuters



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Minor Error
By soulcarver on 6/7/2012 8:34:24 PM , Rating: 2
"Samsung looks poised to [vie] with Intel for dominance ..."




RE: Minor Error
By fteoath64 on 6/8/2012 2:24:03 AM , Rating: 2
More so, Sammy is looking to out-edge Qualcomm with their S4 chips which are formidable and do have a range of offerings having many design wins in the market. Sammy has shown that their Exynos quad outperformed the Tegra3 which is enough to retain their leadership role. The process improvement is just Intel's trick to gain advantage at the expense of huge R&D investments in fabs. Things Intel do on a constant basis to retain its leadership role.

People should give Sammy credit for investing in a plant in Texas compared to China or some third-world country!.


RE: Minor Error
By Aries1470 on 6/8/2012 2:55:57 AM , Rating: 2
Actually, soulcarver was refering to the grammer issue.

Please oh please Jason, I like your articles very much, but can DT actually employ a proofreader / editor to check for things like this.

Here is another one (should be):
"actually manufactures the chips it sells,"

Else, a great article.
@fteoath64

I fully agree with your statement:
quote:
People should give Sammy credit for investing in a plant in Texas compared to China or some third-world country!.

Now all they need to do is also make a "small" assembly line, and begone with the ITC ;-) since it will be made in the USA and then comes the issue of jobs etc to weigh in :-)

People need to understand that manufacturing EVERYTHING in China is not always good, and many countries across the globe should still manufacture in other countries. :-)

Again, thanks Jason for a good read, I don't need to scourge the web to find most of the things I need, and I personaly like the color you put on things.


“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads














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