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Samsung's foundry division is reportedly poised to slash its capital expenditure to 5 trillion Korean won (approximately $3.5 billion) by 2025, marking a significant reduction of over 50% from the previous year. This strategic shift may be attributed to Samsung's struggles in securing major clients, coupled with setbacks and yield challenges in advanced manufacturing processes. Conversely, TSMC and Intel are vigorously ramping up their capital investments in anticipation of the fierce competition in the 2-nanometer chip market. It is said that Samsung will likely concentrate its investments on the S3 facility at its Hwaseong plant and the P2 facility at its Pyeongtaek plant. In stark contrast, TSMC intends to invest between $38 billion and $42 billion in 2025, with a substantial 70% allocated to research, development, and production of cutting-edge processes.
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