Samsung Electronics has announced plans to begin mass producing 2nm chips by 2025 and 1.5nm chips by 2027.
The company’s processor-making business has succeeded with its plans for 4nm chips and is now making ambitious claims about the future.
First, you need to understand why smartphone makers prefer smaller-sized processors or SoC. The understanding is that with smaller-sized chips, there are smaller internal components, and by relation, the battery does not become overburdened, powering too much load. In addition, they allow manufacturers to pack more features because they take up smaller space. So, while a 4nm chip is better than the previous 7nm processors, the 2nm and 1.5nm chips are preferable when they become available.
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Samsung is one of the third-party chip suppliers, and its 4nm chips are expected to power the upcoming Google Pixel 7 series smartphones. The company also began making 3nm chips in June 2022, according to Gadgets360. However, it is by no means alone, as it faces competition from TSMC, Mediatek, and Qualcomm (Apple makes its chips in-house).
“There has been some progress (in raising prices) this year, and costs are being reflected…New orders won currently will be made after 2-3 years, so the direct impact of the current atmosphere will be minimal,” Moonsoo Kang, executive vice president of Samsung foundry arm said in a statement on Tuesday, October 4, 2022.
Industry analysts say that while Samsung is one of the world’s largest chip makers, it has struggled to meet expectations in recent years. However, it plans to bounce back with a strategy it is yet to reveal to the public. Although, it did mention building a factory in Texas to ensure that it can service US demands locally in the near future.
In addition, the upcoming 2nm and 1.5 chips would support automotive, datacenter AI, 5G connectivity, and IoT.
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