Samsung is the first to start production of 3-nanometre chips

Samsung Electronics has begun mass producing of chips with cutting-edge 3-nanometer technology, making it the first to do so worldwide, as the company looks for new customers to compete directly with TSMC in contract chip production. Compared with traditional 5-nanometer chips, Samsung claims that the first-generation 3-nanometer process may save power by up to 45%, enhance performance by 23%, and cut area by 16%.

Samsung did not name any customers for its most recent foundry technology, which produces made-to-order processors like mobile CPUs and high-performance computing chips. Analysts said Samsung itself and Chinese companies would be among the initial users of this new foundry technology, which offers made-to-order processors like mobile CPUs and high-performance computing chips. TSMC is the world's most advanced foundry chipmaker, with a 54% share of the global contract manufacturing of chips used by firms such as Apple and Qualcomm that do not have their own semiconductor facilities.

Samsung, which holds a 16.3% market share, has announced a 171 trillion won investment plan to overtake TSMC as the world's top logic chipmaker by 2030. Samsung Co-CEO Kyung Kye-hyun said earlier this year that its foundry business will seek new clients in China, where it expects strong demand, as businesses from automakers to appliance manufacturers rush to secure capacity to address persistent global chip shortages.

Samsung is the first to start 3-nanometer chip production, but TSMC has announced plans to reach 2-nm volume production in 2025. Samsung is the world's leading memory chip manufacturer, but it was outspent by TSMC in the more diversified foundry business, making it difficult to compete.