Samsung doubles EUV contract to $1.29bn to fend off Intel and TSMC

Samsung has nearly doubled how much it’s prepared to spend completing a new production line at its Hwaseong plant, taking the total cost to $1.29bn. Eesh. The line, which is expected to be operational by April 2020, is a part of a colossal six trillion KRW investment in the plant, set for “state-of-the-art infrastructure including Extreme Ultra Violet (EUV) equipment.”

Samsung announced it would be accelerating its plans to upgrade the semiconductor fab back in 2017, and spending the equivalent of over $5bn USD to meet burgeoning demand. The memory market is a little different now, with a global oversupply and slow demand accounting for a fallout in revenue for the global giant. It may even lose its IC throne to usurper Intel, reportedly set to clamber its way back to the top of the market.

But the development at its Hwaseong fab should help the company stay ahead of the game, with the latest EUV production helping it achieve process density of 7nm and smaller in the years to come. And since Samsung offers its fab space out to fabless chip designers, some of your gaming chips may well come from this very fab in the future.

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