Samsung to boost foundry chipset production in Korea to counter chipset shortage

Earlier this month, the White House hosted a meeting with corporate leaders of Samsung, Intel, and other companies to discuss how to ensure a stable chip supply in the US as its global scarcity is at the peak.

Among those companies, Samsung is the most affected OEM from chipset shortage as its Austin-based plant of semiconductors faced massive power outage due to winter halt.

However, the fab plant resumed operations in late March to stabilize the demand and supply chain but looks like the shortage transformed into a pandemic for the company, just like the ongoing COVID-19 scenario.

Now to tackle this pandemic, “the chipset one”, officials said on Thursday that they will maximize its foundry production capacity to cope up with soaring demand for chips.

“We will maximize our foundry capacity by operating our Pyeongtaek line in the second half, actively responding to increasing demand,” said Han Seung-hoon, a vice president at the Samsung’s foundry division.

The foundry is located in Pyeongtaek, south of Seoul where the company will start mass production in the second half of this year to handle the rising demand for semiconductors.

Moreover, Samsung started construction for its foundry production line in the city in the month of May (2020), with plans to produce advanced 7-nanometer and 5-nanometer chips based on the company’s process technology.

The new foundry will also fulfill the chipset demand of Other Firms

The designed components of Pyeongtaek foundry will not only manage the company’s SoC demand but also help the various firms including global automakers and other manufacturers, which are also struggling with the same issue.

Besides, Samsung’s announcement comes as a stress buster for manufacturers in the automobile, technology, and other industries as now they will get enough chips for their products by meeting the rising demand.


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