Samsung Semiconductor Breaks New Ground for Semiconductor Manufacturing Facility

Samsung Establishes New Semiconductor Fab in San Jose, California

by Anton Shilov
07/14/2013 | 12:46 PM

Samsung Semiconductor, the world’s third largest contract maker of chips, has kicked off construction of its new facility in San Jose, California. The new fab will be used for manufacturing of leading-edge chips as well as for research and development of new semiconductor manufacturing technologies.


"Although we have had a really great 30 years in Silicon Valley here, it is not enough. I truly believe this new campus will provide the world's best convenience and comfort for our employees. In two years, I would like to invite all of you here when we finish the buildings," said Charlie Bae, the president of Samsung Semiconductor Inc. (SSI), reports Silicon Valley Business Journal. 

Samsung did not reveal a lot of details regarding its new facility. The only thing we know so far is that it is a 680,000-square-foot project with a “breathtaking design” developed by architecture firm NBBJ.

"This facility will play a very important role in expanding our R&D capabilities in Silicon Valley," said OH Kwon, the vice chairman and CEO of Samsung Electronics.

At present, Samsung Semiconductor primarily makes chips for Samsung’s own consumer electronica business as well as for Apple. Recently it transpired that Samsung is in talks with Amazon, Nvidia and Sony to make chips for them.

According to market tracker IC Insights, in 2012, Samsung almost doubled its foundry sales and surpassed UMC to become the third-largest IC foundry in the world, according to estimates by IC Insights market tracking firm. It is believed that the company’s dedicated semiconductor foundry capacity reached 150 thousand 300mm wafers per month in Q4 2012. Using an average-revenue-per-wafer figure of $3000, Samsung’s IC foundry capacity currently has the potential to produce annual sales of about $5.4 billion.