Despite present global economic challenges, Samsung Electronics' chip contract manufacturing unit announced on Tuesday that it expects to more than triple its advanced chips production capacity by 2027 to fulfill robust demand.

On Oct. 3 in San Jose, California, at the annual Samsung Foundry Forum, the company unveiled a reinforced business plan for its foundry business.

In June, Samsung started manufacturing 3-nanometer semiconductors in large quantities. For a 3-nanometer partnership, the business was in discussions with Qualcomm, Tesla, and Advanced Micro Devices, among others.

In order to meet the demand for high-performance computing and artificial intelligence applications, the second-largest foundry in the world, Taiwan Semiconductor Manufacturing Co (TSMC), plans to begin mass producing advanced 2-nanometer technology chips by 2025 and 1.4-nanometer chips by 2027.

"There has been some progress (in raising prices) this year, and costs are being reflected... New orders won currently will be made after 2-3 years, so the direct impact of the current atmosphere will be minimal," Moonsoo Kang, executive vice president of Samsung Electronics foundry business said.

"We have been keeping in line with customers' expectations since the start of 3-nanometre mass production this year," Kang said. He pointed out that the long-term expansion of high-performance computing, artificial intelligence, 5G and 6G connectivity, and automotive applications is driving a significant rise in demand for sophisticated chips with a 5 nanometer or smaller size, despite the current inflationary pressures.

According to Co-CEO Kyung Kye-hyun said, the company's foundry business has trailed behind TSMC in terms of performance and development timeline for 5- and 4-nanometer circuits, but clients are interested in the second generation of 3-nanometer chips that will be produced starting in 2024.

For the first time ever in the world's semiconductor business, Samsung has recently introduced the gate-all-around (GAA) based 3-nm process technology to mass production. The company announced at the meeting that it will improve GAA-based technology going forward and introduce the 2-nm process in 2025 and the 1.4-nm process in 2027.

The demand for advanced semiconductors has significantly increased due to the market growth in high-performance computing (HPC), artificial intelligence (AI), 5/6G connectivity, and automotive applications. As a result, innovation in semiconductor process technology is crucial for the commercial success of foundry customers.

In addition to outlining the steps its foundry business is taking to meet customer needs, Samsung also provided an overview of the event. These steps included: foundry process technology innovation, process technology optimization for each specific application, stable production capabilities, and customer-specific services.

For operations to begin in 2024, Samsung is currently constructing a semiconductor manufacturing facility near Taylor, Texas.