Samsung increased production capacity of 5nm chips, determined not to lose orders for Snapdragon 875 chips to TSMC

As expected, Samsung will accelerate and upgrade the manufacturing process of 5nm chips to retain important customers like Qualcomm. The new production capacity of this process will be announced later this year.

Samsung 5nm chip orders in the coming time are mainly chop Snapdragon 875, smartphone modem X60 and Samsung Exynos 1000 chip.

Previously there were rumors that Samsung’s 5nm process was having major problems and there was a potential risk that Samsung could lose a lucrative order from Qualcomm to TSMC.

The knowledgeable at that time said that Qualcomm asked TSMC to urgently support orders for Snapdragon X60 and Snapdragon 875G because Samsung could not achieve the desired 5nm output. According to the previous plan, most of the orders for Snapdragon 875G chip were contracted by Samsung. But it seems that some orders will pass to TSMC to meet the need to hand over chips to Qualcomm’s partners.

TSMC’s 5nm chip manufacturing capacity, however, appears to have saturated due to the huge demand for chips from the Apple A14 and Huawei’s new Kirin line of chips.

Not long ago, DigiTimes revealed that Samsung’s 5nm EUV process is having problems. In addition, the productivity of the new line did not appear to be as expected. This has a big impact on the launch of Snapdragon 875G and Snapdragon 735G chips.

Samsung first announced plans to develop 5nm processes in 2019 and started pumping money for production lines earlier this year. However, the Covid-19 epidemic has significantly affected Samsung’s plans. But to make sure things continue, Samsung has decided to add a 5nm casting line in Pyeongtaek, South Korea, to speed production.

See Gizchina