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Wednesday, October 19, 2016

Samsung Announces 10-Nanometer Production, Lags Taiwan Semiconductor Mfg. Co. Ltd.

In a press release on Oct. 17, #Samsung (NASDAQOTH:SSNLF) announced that it had begun mass production of its first system-on-chip based on its 10-nanometer LPE ("low power early") technology. The company boasts that this technology delivers an "up to 30% increase in area efficiency with 27-percent higher performance or 40-percent lower power consumption." Although this press release might initially be viewed as a positive for Samsung, it really demonstrates how behind its main competitor -- Taiwan Semiconductor Mfg. Co. Ltd (NYSE:TSM) -- Samsung is. Less than a full generation shrink Notice that Samsung claims that its 10-nanometer process delivers "up to a 30% increase in area efficiency" -- that's far less than the typical 50% shrink that a new manufacturing generation is supposed to bring. I suspect that Samsung sacrificed area scaling in order to hit a more aggressive rollout schedule.

http://www.fool.com/investing/2016/10/17/samsung-announces-10-nanometer-production-lags-tai.aspx

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