Samsung is first to start mass production of 3-nanometer chips

Samsung Electronics kicked off mass production of 3-nanometer chips that are more powerful and efficient than predecessors, reaching a key milestone in the race to build the world’s most advanced chips.

South Korea’s largest company will begin with 3nm semiconductors for high-performance and specialized low-power computing applications before expanding to mobile processors, it said Thursday. By applying so-called Gate-AllAround transistor architecture, Samsung’s 3nm products reduce power consumption by up to 45% and improve performance by 23% compared to 5nm chips, it said.

Samsung’s push to be first to market with the latest technology is essential in its uphill climb to match Taiwan Semiconductor Manufacturing Co., which remains dominant in the contract chipmaking, or foundry, market. The Taiwanese firm accounts for more than half of the global foundry business by revenue and is the exclusive supplier of Apple Inc.’s Silicon processors for iPhones, iPads, MacBooks and desktop Mac PCs.

TSMC and Samsung are competing for large orders from the likes of Apple and Qualcomm Inc. 3nm mass production from the Taiwanese chipmaker will commence in the second half of the year, TSMC has said.

Samsung’s advance comes at a sensitive time for the semiconductor industry, whose place in the global geopolitical order is under scrutiny by leading governments. The U.S. and China have both taken steps to bring more chipmaking capacity and expertise within their borders — arguing it’s a matter of national security — and Samsung is in the process of setting up a new fabrication facility in Texas.