Samsung just tooled up for mass production of the chipsets that will go into the Galaxy S10 and Note 10, as it is breaking ground on a brand new foundry this week, tasked with making the plunge all the way down to the 7nm production node. The factory costs $5.6 billion, yet Samsung has further expansion plans about it, since the 7nm process will be with us for at least a few years going forward.
Apple, in its constant efforts to move away from Samsung as components supplier, has tasked the production of its 2017 edition A11 chipset entirely to the Taiwan Semiconductor Manufacturing Co. (TSMC). Its 86-year-old chairman Morris Chang has just become a billionaire in the process. Shares of TSMC have jumped 27% in a year, making his stake in the company valued at a cool $1 billion.
Samsung knows there’s money to be made producing semiconductor chips for others by demand, so it makes all kinds of sense that the company has formed a contract chip manufacturing division. Sammy has the tech and capacity to manufacture cutting-edge chipsets for the likes of Apple, Nvidia, and Qualcomm. With a dedicated foundry, It’s not a problem for Samsung to line up among the world’s premier chip fabricators, such as TSMC and Globalfoundries.
Analysts and those observing Samsung’s success with chip making have been thinking along the same lines for a long time, …