Samsung Foundry, the semiconductor chip manufacturing arm of Samsung Electronics, is making a comeback in the chip foundry market. After losing several key clients, including Apple, Nvidia, and Qualcomm, to rival TSMC, Samsung is now poised to reclaim some of its lost ground.

Samsung Cuts Ties with BOE

The turnaround is being attributed to Samsung’s significant improvements in its 4nm chip fabrication technology. Reportedly, the company has managed to match TSMC’s yield and performance for 4nm chips.

Samsung could manufacture AMD’s Zen 5c chips

This progress has caught the attention of AMD, which has reportedly decided to use Samsung Foundry’s 4nm process for its next-generation Zen 5c processors. The lower-end models in the Zen 5c lineup are expected to be made using Samsung’s 4nm process, while the higher-end models will utilize TSMC’s 3nm process.

AMD Zen 5c chips Samsung 4nm technology

The successful production of AMD Zen 5c chips by Samsung could potentially open the door for AMD to consider Samsung Foundry’s new 3nm GAA process in future endeavors. 

Kim Yang-paeng, a researcher at the Korea Institute for Industrial Economics and Trade, believes that “if Samsung successfully secures an order for AMD’s 4-nano chips this time, it will pave the way for transactions in the ‘big chip’ field for servers, where Samsung has traditionally been less dominant. In the future, cutting-edge processes like 3-nano could become a reality for Samsung, further expanding its influence within the industry.”

Samsung’s improved chip fabrication capabilities are also attracting attention from other companies, particularly in the Generative AI segment. With TSMC’s chip production capacity overburdened due to the surge in demand for AI-related chips, companies are turning to Samsung Foundry as an alternative, given that these two companies are the only ones in the world capable of producing 3nm and 5nm chips.

Related:

(Via)

RELATED ARTICLESMORE FROM AUTHOR