Samsung wants to keep 2nm chip production in its home country

Samsung and TSMC, leaders in semiconductor manufacturing, are strategically expanding their production capabilities, both domestically and internationally, focusing on safeguarding their most advanced chip-making technologies within their home countries.

According to Sammobile, Samsung is set to commence production of 2nm chips in South Korea next year, with an ambitious plan to invest approximately 500 trillion Korean won ($375.3 billion) by 2047. This investment aims to establish a large semiconductor cluster near Seoul, encompassing 13 factories and 3 research institutes across several cities in Gyeonggi Province. TSMC mirrors this expansion strategy in Taiwan, advancing 2nm factory constructions in the Hsinchu Science Park and the Kaohsiung Science Park, and proposing an additional 2nm factory in Taichung.

Despite these expansions, both giants face challenges abroad, such as talent shortages and varying levels of government subsidies. Samsung’s endeavor to build a 4nm factory in Texas has been postponed to 2025, reflecting similar delays with TSMC’s Arizona plants, shifting their operational start from 2025 to 2026. These overseas facilities, when operational, will utilize semiconductor technologies approximately two generations behind those employed in their domestic counterparts.

While global regions offer subsidies for semiconductor facility construction, neither Samsung nor TSMC has pursued large-scale investments or fully dismissed these subsidies, with cost considerations playing a significant role, notably TSMC’s U.S. facilities costing 40% more than those in Taiwan.