Global tech powerhouse, Samsung is planning to invest over $10 billion to build a new chip factory in Austin, Texas, as it pursues a massive expansion scheme to fill the manufacturing gap in demand for chips, which Samsung's existing facility is unable to cope with. Some big customers of Samsung are Qualcomm, Intel, and Tesla, among others, and their demand quantum has increased in the past few months.
In addition, the new factory is expected to produce advanced chips like the 3nm within a short period, which would give Samsung some leverage as a global leader in mobile chip fabrication, as it seeks to upend its major competitor TSMC. Samsung got some boost after Qualcomm switched back to Samsung for the new Snapdragon 888, a sharp departure from the Snapdragon 855 and Snapdragon 865 which were both manufactured by TSMC.
The advanced technology and high-end 3nm chips could enhance overall performance by up to 35% performance increase, a massive 50% reduction in power consumption, and a 45% reduction in size, when compared with 7nm chips, according to Samsung.
A total of $116 billion is earmarked for the completion of the factory over the course of its operation as Samsung pursues its goal to become the biggest player in the chip-making segment of the tech ecosystem.
The chip manufacturing industry, last month experienced a huge disequilibrium in the demand-supply balance as most suppliers could not meet the demands of major customers, leading to the temporary closure of some car factories as a result of the absence of important chip components.
Therefore, Samsung's plans for expansion would serve as a huge boost to the industry. Samsung is a global leader in telecommunications, home electronics, and various segments of the technological spectrum.