Samsung-TSMC rivalry heats up as US cracks down on Huawei

Two giants rush to expand foundry capacity and develop cutting-edge chips

20200526 Samsung TSMC

Samsung and TSMC are both spending big on 5-nanometer chip development. (Source photo by Reuters) 

KIM JAEWON, CHENG TING-FANG and LAULY LI, Nikkei staff writers

SEOUL/TAIPEI -- The rivalry between Samsung Electronics and Taiwan Semiconductor Manufacturing Co. is intensifying as the latest U.S. ban on Huawei Technologies changes the landscape of the chip foundry business.

Samsung announced on Thursday that it is building new production lines in Pyeongtaek, south of Seoul, to mass produce 5-nanometer chips from the second half of next year. This follows production lines in Hwaseong, where Samsung aims to start producing the cutting-edge chips this year.

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