Samsung Electronics, which is vying with Taiwan’s TSMC for market dominance, declared on Thursday that it had begun mass producing advanced 3-nanometer microchips.

Before being employed in devices like mobile phones, the new chips will be used in high-performance computer applications. They will be smaller, more powerful, and efficient.

The first-generation 3nm technology, according to Samsung, “can reduce power consumption by up to 45 per cent, boost performance by 23 per cent, and reduce the area by 16 per cent” when compared to the 5nm process.


The South Korean company stated last month that it would “push ahead the mass production of chips based on the 3-nanometer technology” with a five-year plan to invest 450 trillion won (US$356 billion).

Only two businesses, Samsung and Taiwan’s TSMC produce the great majority of the most sophisticated microchips in the world, and both are currently operating at maximum capacity to address a global shortage.

Although it dominates the memory chip market, Samsung has been unable to keep up with TSMC in the advanced foundry sector.

According to TrendForce, TSMC holds a majority of the worldwide foundry business with clients like Apple and Qualcomm, while Samsung is in second place with a market share of about 16 per cent.

As per the company’s 2021 annual report, TSMC intends to start 3-nanometer technology volume production in the second half of this year and 2-nanometer technology development last year.