South Korean tech giant Samsung plans to build a chip manufacturing plant in Austin, Texas. According to information collected by the Bloomberg portal, it would have an initial investment of 10 billion US dollars.
It stands out from this news that the firm will be able in the near future to manufacture the 3 nanometer chips. In this way, Samsung is trying to balance the largely Asian-dominated chip manufacturing market. Thus, the participation of the United States in this market could inject further momentum into it.
It should be noted that the chips manufactured by many technology companies are used to assemble Bitcoin mining machines. In such a way that, in the future, better technology and capacity of these will be necessary, given the characteristics of digital mining.
Why is Samsung planning to build a plant in the United States?
The fact that Samsung is currently planning to build a chip manufacturing plant is already great news for Bitcoin. This is precisely the basis for the fact that manufacturers of digital mining equipment could be closer to the increasingly hungry North American market.
«This is the news that the Bitcoin mining industry has been eagerly awaiting. A US-based chipmaker would dramatically change the power dynamics between East and West“Said Nick Hansen of Luxor Technology.
In comments to the CoinDesk portal, Hansen, who is CEO of the aforementioned mining company, assured that the way could be paved. By this he means that the commercial setbacks of the distance between both parts of the world could be alleviated.
The problem that has yet to be solved is the shortage of chips for the manufacture of mining machines. With Samsung’s investments, apart from the plant that this firm plans to build, the shortage problem could be answered.
The supply problem could be solved
When it comes to the mining equipment shortage, which forces miners to turn to the secondary market, Hansen is optimistic. «Currently, access to a constant supply of mining machines is a constant bottleneck for the growth of the industry.», He stressed.
Consequently, it is «uproot a long-standing duopoly in China, which has far-reaching implications». Currently, the main manufacturers of ASICs for Bitcoin mining acquire their chips from firms such as Taiwan Semiconductor Manufacturing Co. (TSMC).
However, with the plant that Samsung plans to build in the United States, the capacity for large-scale manufacturing of mining equipment will increase.
These are the plans of the South Korean technology company, which aims to inject about 116 billion dollars in a period of 10 years to create the 3-nanometer chips.
It should be remembered that the already highlighted shortage of equipment is due to high demand. In the midst of this, the largest manufacturer of these mining machines, Bitmain, announced that it has no supply until the end of August 2021.
Data to take into consideration
- With the investment of 116 billion dollars for the chip foundry, Samsung aims to unseat TSMC.
- One of the first steps for this is the project with which Samsung plans to build a gigantic plant in Texas.
- For this plant, the firm could inject about 10 billion dollars, reported Bloomberg.
- The plant, located at its Austin headquarters, would start operations in 2023.