Samsung said it will start making chips with a 2 nanometer process in 2025 and 1.4 nanometer process in 2027, in a bid to catch up with market leader TSMC.
The South Korean firm, known for consumer electronics and memory chips, is looking to ramp up its contract chipmaking, or foundry business, in a bid to catch up with Taiwan's TSMC.
Samsung is the second-biggest foundry globally by revenue, with a 17.3% market share compared to 52.9% for TSMC, according to TrendForce. For its part, TSMC expects to begin 3nm chip production this year with production of 2nm set to begin in 2025. However, the company has not officially announced plans to mass produce 1.4nm chips.
"This is the first time that SEC guides for its long term foundry roadmap and I think it is more aggressive than TSMC and market expectations," SK Kim, analyst at Daiwa Capital Markets, told CNBC. Samsung's ambitious plans come amid global economic headwinds and signs of a slowdown in semiconductor demand. Global chip industry sales fell 3.4% in August compared to July, according to the U.S.-based Semiconductor Industry Association.