Samsung Electronics plans to invest $6.98 billion (8 trillion KRW) to extend its high-tech system semiconductor production lines, starting with investments in its 10nm production lines next month and the construction of new 7nm semiconductor facilities next year.
The South Korean company is trying secure a lead in the ultra-fine processing technologies faster than its competitors and regain foundry orders from Apple, which has lately opted for Taiwan's TSMC.
Samsung will extend 10nm semiconductor production lines in its facility located in Hwasung-si, and has already ordered relative equipment. Starting from second quarter, the new facility will be ready to output 10nm chips.
Qualcomm's Snapdragon 835 as well as Samsung's own Exynos 9 Series (8895) application processor are already produced from Samsung's existing 10nm production lines.
Until now, Samsung's 17 Line has been producing DRAM and 3D NAND flash.
Samsung expects that 7nm chips will be commercialized in 2018. The company's plan includes the construction of new facilities and clean rooms, with the equipment to be installed by end of this year. This investment will reach the $5.23 billion (6 trillion KRW). Samsung plans to initially produce 30,000 7nm chips per month, by the second half of 2019.
Samsung has decided to use EUV equipment to produce 7nm semiconductors and has reportedly already ordered 8 systems from ASML, in an investment of about $1.74 billion (2 trillion KRW).