Samsung Beefs Up Chip Foundry Business as It Looks to Challenge TSMC

Samsung Electronics Co.’s chip foundry business is adding production capacity and more advanced manufacturing techniques, aiming to make gains on market leader Taiwan Semiconductor Manufacturing Co.

The South Korean company said it will introduce so-called 2-nanometer production for mobile phone parts by 2025 and expand applications. Samsung will also significantly increase output in Pyeongtaek, South Korea, and Taylor, Texas, to shore up the foundry division, which makes chips for customers on a contract basis, the company said at a presentation Tuesday in San Jose, California.