The Samsung foundry will almost double its output by 2026

It’s hard not to notice that we’re currently in the middle of semiconductor problems. Factories are working full steam ahead, but supply chain difficulties are causing chaos and bottlenecks – whether that means there is not enough packaging material, delivery costs have risen 10 times or additional tariffs, causing various semiconductor-relying industries to wait for supply. and then pay over expected prices. Regardless, everything that is made is sold, so all large foundries invest more in their supply chain ecosystem as well as in raw production, and Samsung is no different.

Samsung Foundry, as one of the three leading foundry offerings on the market, has the same message as the others: invest in production, invest in the supply chain and offer a wider range of functions that customers require. For example, the company announced earlier this year that it plans to spend $ 17 billion on new U.S. production facilities by the end of 2023, boosting its U.S. production beyond the 65nm / 14nm S2 plant in Austin (the exact location of the new U.S. plant) ) is unknown). Samsung also has 4 other factories in Korea, along with testing and packaging facilities.

As part of the Samsung Foundry Forum 2021 event this week, the company predicts a nearly 2x increase in waffle production from 2021 to 2026. Using 2017 as a starting point, Samsung states that through the production of its S3 / S4 factories and the first phase of its S5 factory comes online, it is currently at 1.8 times higher production than in 2017. By 2026, as the S5 grows and expands into its second phase, it is expected to be around 3.2x (or more) compared to the 2017 output.

Samsung will not allow us to recreate the slide at our briefing, but here are the highlights:

  • 2017: 1.0x, S3 / S4 Fabs start
  • 2021: 1.8x, S5-Phase 1 begins, Phase 2 in 2022/2023
  • 2026:> 3.2x

Samsung Foundry calls this its medium-term capacity plan. Currently, Samsung has the following features:

  • S1, Giheung Korea, for 8-65nm, line 6 for 65-180nm
  • S2, Austin USA, for 14-65nm
  • S3, Hwaseong Korea, for 10nm class
  • S4, Hwaseong Korea, for CMOS image sensors
  • S5, Hwaseong Korea, Phase 1 for EUV
  • Testing / Packing Center in Onyang, Korea
  • Testing / Packaging Center in Suzhou, China

From now until 2026, Samsung is expanding the S5 into a second phase, as well as building a second factory in the US. When asked about the details of the new factory in the USA, we were told that no new information is coming out at this event and that we are waiting for further announcements and developments.

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Naveen Kumar

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