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Samsung and TSMC are leaping forward to bring the next generation of 2nm chip. It is believed to be a major leap in the world of mobile processors and technology. For instance, the latest is a 3nm-processed chip, used in Apple iPhone 15 Pro models. While the two major chip makers have expanded their 4nm chip manufacturing bases to Japan and the US, they will reportedly manufacture the 2nm chips in their homelands, i.e., South Korea and Taiwan, respectively.
Samsung & TSMC 2nm chips will be manufactured in South Korea and Taiwan
According to recent reports from the South China Morning Post and the Korean Times, Samsung is prepping for 2nm chip production in South Korea next year. The company has set aside a hefty investment totaling KRW 500 trillion ($371 billion) by the year 2047 to establish a sprawling “mega-cluster” semiconductor plant near Seoul. This expansive facility will encompass 13 chip plants and three research centers, all dedicated to manufacturing 2nm chip.
Meanwhile, TSMC wants to construct 2nm chip fabrication plants and science parks in Hsinchu and Kaohsiung in Taiwan. They also have a plan to build another factory in a city called Taichung, but they’re waiting for government approval. Also recently, it offered a 2nm processor prototype’s exclusive look to its major business partners, Apple and NVIDIA.
But why are they keeping 2nm chip production limited to the homeland?
A big reason behind this is because it’s cheaper for them to make processing chips at home. As reported by the South China Morning Post, Eddie Han explained, “Making chips in the US costs a lot more than in Taiwan or Japan.” This means that for Samsung and TSMC, it’s better to build and run their factories in their own countries. They can save money this way, which is important for any big business.
Another reason is that their home countries are helping them out. The government in South Korea, where Samsung is from, is giving them a lot of support. They’re investing a huge amount of money into making more chips in South Korea. And the president there says this will create a lot of new jobs. So, for Samsung and TSMC, it’s not just about money; it’s also about getting help from their governments.