Samsung Electronics has announced that it will double the production capacity for advanced chips by 2027, as the world goes continues to wrestle with a tight supply.
The Korean chipmaker is looking to capitalise on the strong demand for computer chips, which are used in most of today’s technology – from smartphones to cars.
“There has been some progress [in raising prices] this year, and costs are being reflected… New orders won currently will be made after two to three years, so the direct impact of the current atmosphere will be minimal,” said Moonsoo Kang, executive vice president of Samsung Electronics’ foundry business.
Earlier this week, the boss of carmaker Stellantis cautioned that the short supply of semiconductors is likely to leak into the new year and remain restricted until the end of 2023.
Competition over supply has hit a boiling point globally, from both consumers and suppliers.
It means governments across the European Union, US and the UK have been racing to set out a strategy on how best to secure the supply and capitalise on the demand.
Samsung is currently building a chip production facility in Taylor, Texas, which is expected to begin operations in 2024.
“US customers are especially interested in production in the United States, for supply chain stability,” Kang added. “Our Taylor site is very large… It’s a good site for expansion.”