Industry Watcher: TSMC’s U.S. plant will be more pressure on Samsung Grofond

May 19 (UPI) — TSMC announced on its official website on Friday that it plans to build a 5nm chip plant in the U.S., industry watchers said, adding that the pressure on the two chip generation series, Samsung and Grofand, will be even greater.

Industry Watcher: TSMC's U.S. plant will be more pressure on Samsung Grofond

According to the official website, TSMC’s plant will be built in Arizona, starting in 2021 and scheduled to start production in 2024, producing 20,000 wafers a month, including capital expenditure, and TSMC is expected to invest $12 billion in the plant from 2021 to 2029.

Industry watchers say that after TSMC builds its U.S. plant, its chip foundry rivals Samsung and Grofond will face more pressure.

Industry watchers say TSMC, the technology-led company, is firmly in the lead in chip contracting, with a share of more than 50 per cent of the chip contract market, which is achieved without a factory operating in the US.

Industry observers further said that although TSMC does not have a factory in the United States, but the United States manufacturers are its main source of income, Apple, Broadcom, Qualcomm, Nvidia and other manufacturers are TSMC customers, to obtain orders from these customers, mainly because of TSMC advanced chip foundry technology. But after the u.S. plant, closer to these customers, easy prenatal communication coordination and post-production delivery, while maintaining the process leadership, but also better to ensure these customers’ orders.

In the U.S., Samsung is much earlier than TSMC, Samsung’s Austin semiconductor plant, which went into production in 2005 and has since expanded, has also put into production a 14nm process, but has not shaken TSMC’s position in the eyes of U.S. chip designers.

Of course,media reported that Samsung plans to put into production of more advanced chip technology in the United States in the future, but whether it will be able to grab orders from TSMC is still unknown.

Although Grofand is an American chip generation, but in 2018, they have announced the abandonment of 7nm and more advanced technology, so there is no longer a chip process to TSMC challenges, with the further upgrading of TSMC chip technology, but it will be TSMC to Bring greater pressure to Grofont.