Samsung Electronics Co. Ltd. has begun work on a new chip production line in South Korea that will make cutting edge five-nanometer chips for use cases such as 5G networks and artificial intelligence.

The electronics giant detailed the project on Thursday, saying that production is expected to begin in the second half of 2021.

The foundry, located inside a facility (pictured) south of Seoul in the city of Pyeongtaek, is the second of its kind Samsung is building. Samsung is also working on a five-nanometer chip production line in nearby Hwaseong that’s on track to begin manufacturing processors this year.

Five-nanometer fabrication is the newest and most efficient manufacturing method available in the semiconductor industry. Only one other company besides Samsung, Taiwan’s TSMC Co. Ltd., is known to be fielding the technology on a large scale. Chips made on five-nanometer production lines will have smaller transistors than today’s commercially available processors with better performance and increased power efficiency.

The fabrication itself is conducted using a technique known as extreme ultraviolet lithography. As the name suggests, it involves using beams of ultraviolet light to etch circuit patterns into the silicon wafers from which the processors are made. The beams have a shorter wavelength than the light produced by previous-generation semiconductor fabrication machines, which allows chipmakers to create smaller transistors.

Last year, Samsung said that its five-nanometer silicon will provide up to 10% more processing speed and 20% better power efficiency than seven-nanometer products. The newly announced Pyeongtaek production line will make processors for clients of Samsung’s contract chipmaking business. Samsung, the world’s largest smartphone maker, manufactures silicon not only for its own devices but also other companies, including Apple Inc.

“This new production facility will expand Samsung’s manufacturing capabilities for sub-5nm process and enable us to rapidly respond to the increasing demand for EUV-based solutions,” ES Jung, the head of Samsung’s foundry business, said in a statement.

Rival TSMC is currently ahead of Samsung in the five-nanometer race. The Taiwanese firm already started making chips based on the technology earlier this year, with much of its capacity having reportedly been reserved by Apple to manufacture the processor for the next iPhone.

Intel Corp. is looking to join the fray as well, though it’s currently making chips using older 10- and 14-nanometer manufacturing technology. Chief Financial Officer George Davis said earlier this year that the company is looking to reach parity with Samsung and TSMC in the seven-nanometer chip category next year. After that, Davis said, the goal is to “regain leadership in the five-nanometer generation.”

Photo: Samsung