Samsung beats Taiwan Semiconductor, becomes first foundry to mass produce 3 nm chips
David Ramos/Getty Images News


Samsung (OTC:SSNLF) said on Thursday that it became the first foundry to mass produce 3 nanometer chips globally, beating its rival Taiwan Semiconductor (NYSE:TSM) in achieving the feat.


The newly developed 3 nm chips have 45% less power than the 5 nm chips that are standard today, as well as a 23% improvement in performance and use 16% less surface area, according to a statement from Samsung.



âWe will continue active innovation in competitive technology development and build processes that help expedite achieving maturity of technology," said Dr. Siyoung Choi, President and Head of Foundry Business at Samsung Electronics, in the statement.


Samsung (OTC:SSNLF) shares were little changed in premarket trading, while Taiwan Semi (TSM) shares fell more than 2.5% to $81.52.


Samsung (OTC:SSNLF), which has roughly 16.3% of the foundry market, according to TrendForce, makes chips for companies such as Qualcomm (QCOM), Apple (AAPL), Best Buy (BBY) and Samsung Electronics.


The company did not name what company would be receiving the 3nm chips.



Samsung (OTC:SSNLF) is the market leader in memory chips, but has lost market share to Taiwan Semi (TSM) in other areas, Reuters reported.



Earlier this month, it was reported that Taiwan Semi (TSM) would start producing 2 nm chips by 2025, as it continues its intense competition with Samsung.



Samsung (OTC:SSNLF) has recently been reported to have interest in acquiring NXP Semiconductor (NXPI), adding to multi-year speculation that the two companies would eventually combine.