Despite present global economic challenges, Samsung Electronics' chip contract manufacturing unit announced on Tuesday that it wants to expand than triple its capacity to produce sophisticated chips by 2027 in order to keep up with demand.

After Taiwan Semiconductor Manufacturing Co (TSMC), the second-largest foundry in the world plans to mass produce advanced 2-nanometer technology chips by 2025 and 1.4-nanometer chips by 2027 for usage in high-performance computing and artificial intelligence.

'This year's price increases have made some headway, and costs are now being taken into account. The current environment won't have much of a direct influence on new orders because they won't be made for 2-3 years, 'according to Moonsoo Kang, executive vice president of Samsung Electronics' foundry division.

In June, Samsung started manufacturing 3-nanometer semiconductors in large quantities. According to Samsung, the business was in discussions with potential clients for a 3-nanometer partnership, including Qualcomm, Tesla, and Advanced Micro Devices.

The largest memory chip manufacturer in the world, Samsung, has struggled in recent years to meet customers' demands for foundry yields. Analysts claimed that the company pushed cutting-edge technology too soon in an effort to compete with TSMC, but that this cost them because they lacked the client cooperation expertise necessary for contract production.

According to Samsung Co-CEO Kyung Kye-hyun, 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.

He pointed out that despite present inflationary pressures, demand for advanced 5-nanometer and finer chips is fast rising because of the long-term rise of high-performance computing, artificial intelligence, 5G and 6G connectivity, and automotive applications.

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