Major chip manufacturers Samsung and TSMC are in the process of planning for their individual 2nm manufacturing. According to recent reports from the SCMP (South China Morning Post) and the Korean Times, Samsung is gearing up to begin 2nm manufacturing in South Korea next year. The company is also pouring in a total of KRW 500 trillion ($371 billion) by 2047 for a “mega-cluster” semiconductor plant in the vicinity of Seoul. This plant will include 13 chip factories and three research facilities where 2nm manufacturing will occur.
On the other hand, TSMC (Taiwan Semiconductor Manufacturing Company Limited) aims to construct 2nm chip fabrication plants and science parks in Hsinchu and Kaohsiung in Taiwan, as well as another plant in Taichung, pending government approval.
While both companies have not completely abandoned their manufacturing projects in other countries, their progress has been sluggish and hindered by various issues. The US has the CHIPS and Science Act which allocates $53 billion for subsidies. However, access to these funds has been slow. In addition, both companies have been facing local talent shortages. Local unions have also impeded TSMC from bringing in specialists from Taiwan.
Although TSMC has two chip plants being built in Arizona expected to produce 4nm chips in 2024 and 3nm ones by 2026, progress has been slow. Similarly, Samsung’s $17 billion plant in Texas, which has been under construction since 2021, is projected to only handle 4nm nodes due to slow progress.
Expansion is moving at a slower pace or not progressing at all in other regions such as Europe, Japan, and India, which have also disclosed plans for semiconductor manufacturing subsidies. Therefore, despite some progress and ongoing efforts, it is proving to be a tough challenge to diversify the production of cutting-edge chips.
