Samsung is accelerating preparations for the production of chips using technological processes thinner than 2 nm

The South Korean company Samsung Electronics is often reproached for lagging behind competitors in the pace of development of advanced lithographic technologies, and as Intel’s ambitions in this area intensify, Samsung’s activity takes on special significance for its strategic development. According to media reports, the Korean giant is accelerating preparations for the start of production of 2nm and more advanced chips.

Image Source: Samsung Electronics

At least, according to Business Korea, the company has begun installing equipment for the production of 2nm products at its S3 facility in Hwaseong, Korea. Already in the first quarter of next year, it will be technically capable of processing 7,000 silicon wafers with 2-nm chips per month.

Starting in the second quarter of 2025, Samsung will also begin installing equipment for the production of 1.4-nm chips at its S5 plant in Pyeongtaek, the corresponding line will be designed to process 2,000 to 3,000 silicon wafers per month. In Hwaseong, a production line that specializes in the production of 3nm products will also be upgraded to produce 2nm chips. This should happen by the end of next year. Samsung’s strategic plans mean that it should begin mass production of 2nm products next year, and switch to the 1.4nm process technology in 2027.

The launch of Samsung’s new plant in the US state of Texas was originally planned for the end of this year, but now it will be commissioned after 2026. Here the company hopes to establish mass production of 3nm products, but so far the progress leaves much to be desired. Samsung will try to attract not only its own division Samsung LSI, which develops Exynos processors, to its 3nm and 2nm process technologies, but also the Japanese PFN, as well as the American Qualcomm and Ambarella.

Low demand for Samsung’s services for the production of 4-nm products has already forced the company to begin converting one of its enterprises in Pyeongtaek to produce memory chips, while the second suffers from low utilization levels, which negatively affects its financial performance. Recommendations began to be made regarding the structural separation of Samsung’s contract business with the aim of bringing it to the stock exchange in order to attract external sources of financing. Success in attracting customers for advanced technology could help bolster investor confidence in Samsung.