Samsung Foundry, the semiconductor chip manufacturing arm of Samsung Electronics, is set for a robust comeback in the chip foundry market. Having faced setbacks with the loss of key clients like Apple, Nvidia, and Qualcomm to rival TSMC, Samsung is now strategically positioned to recapture its market share.
In a significant move, Samsung has decided to cut ties with BOE, underscoring the company’s commitment to revitalizing its standing in the industry. This resurgence is primarily attributed to Samsung’s substantial enhancements in its 4nm chip fabrication technology. Reports indicate that the company has successfully matched TSMC’s yield and performance for 4nm chips, marking a pivotal turnaround.
One notable development is AMD’s interest in Samsung’s advancements. It has been reported that AMD is opting for Samsung Foundry’s 4nm process for its upcoming Zen 5c processors. The Zen 5c lineup is expected to see lower-end models manufactured using Samsung’s 4nm process, while the higher-end models will leverage TSMC’s cutting-edge 3nm process. The potential success of producing AMD Zen 5c chips with Samsung could open doors for future collaborations. This includes the prospect of AMD considering Samsung Foundry’s new 3nm GAA process, a move that could further solidify their partnership.
Kim Yang-paeng, a researcher at the Korea Institute for Industrial Economics and Trade, envisions a transformative impact on Samsung’s position in the ‘big chip’ field for servers. Success in securing an order for AMD’s 4-nano chips could pave the way for significant transactions in this domain, traditionally less dominated by Samsung. Looking ahead, the prospect of Samsung venturing into cutting-edge processes like 3-nano seems promising, indicating an expanded influence within the industry.
Samsung’s enhanced chip fabrication capabilities are generating interest beyond AMD, particularly in the Generative AI segment. The surge in demand for AI-related chips has strained TSMC’s production capacity, prompting companies to explore alternatives. With Samsung Foundry and TSMC being the only two companies globally capable of producing 3nm and 5nm chips, Samsung emerges as a compelling alternative for companies seeking reliable semiconductor solutions in the AI domain.
