Samsung is reportedly preparing to invest heavily in the expansion of semiconductor production lines in the coming months in hopes of getting the jump on – and winning back some customers it lost to – the competition.
Industry sources speaking to Korea’s Electronic Times claim Samsung is going to expand 10-nanometer production using empty space at its 17 Line facility through an investment of around $2.18 billion (2.50 trillion KRW). Once complete and online in the second quarter, the new line should turn out around 18,000 semiconductors per month. That’s in addition to the 25,000 semiconductors currently being produced by its S1 Line, the publication says.
Additionally, Samsung is putting $5.23 billion (6 trillion KRW) toward its 7-nanometer efforts. This money will reportedly be used to construct a new facility and bring in equipment that can produce 30,000 7-nanometer chips per month.
The goal with 7-nanometer, sources say, is to get everything in place and ready to go by the second half of next year or early 2019 if at all possible.
Samsung is no doubt hoping its investments will help it win back some business from Apple who has been reducing its dependence on the South Korean electronics giant as a supplier over the past several years.
As 9to5Mac recalls, the last time Apple bought A-series chips from Samsung was for its iPhone 6s. Some of those A9 chips were made by Samsung, others were made by TSMC. I mention that because TSMC chips reportedly ran cooler and offered better battery life compared to Samsung versions. With the iPhone 7, Apple shifted its entire order of A10 chips to TSMC, no doubt hurting Samsung’s revenues.
If Samsung can get out ahead on 7-nanometer production, it could lure Apple back to its playground.
Lead image courtesy Business Korea