The chipmaker spends approximately $10 billion per year on equipment, research and development

Taiwan News
Date: 2020/07/06
By: Eric Chang, Taiwan News, Contributing Writer

TAIPEI (Taiwan News) — While Taiwan Semiconductor Manufacturing Co. (TSMC) currently controls half of the world’s contract chipmaking business, it is now facing an increased challenge from Samsung Electronics.

Samsung is planning on pouring tens of millions of dollars into research and development over the next decade in hopes of closing the gap between itself and the Taiwanese company, according to a report from Nikkei Asian Review. However, TSMC’s finances and business strategy could make that goal out of reach for the South Korean company.

In 2018, TSMC began construction on a $40-billion state-of-the-art plant in the southern city of Tainan. The Tainan foundry has started producing 5-nanometer chips designed for new Apple iPhones slated for launch in the second half of 2020, according to the report.

These central processing unit chips will then be slimmed down to 3-nanometers in 2022 to meet new 5G equipment specifications. According an industry observer cited by the Nikkei Asian Review, the Tainan plant will become a vital supply base for 5G gear.    [FULL  STORY]