TSMC is helping out Samsung, as the Korean conglomerate could be manufacturing chips for AMD, Google, and NVIDIA.
For years, TSMC has struggled with capacity, because just about every tech company is using TSMC for manufacturing their chips. And as global chip manufacturing capacity remains constrained, many top tech companies are looking at Samsung Foundry to produce their future chips. This includes AMD, Google, and NVIDIA.
This report comes from Nikkei Asia, which claims that AMD, BYD, Google, Tesla, and NVIDIA are increasingly looking at Samsung Foundry for advanced semiconductor production. BYD is talking with Samsung about manufacturing future autonomous driving chips, while Google is looking to use Samsung to build its next-generation Axion processors that are set to launch in 2028, as well as using Samsung to manufacture parts of its future TPUs for AI servers.
This would be a huge win for Samsung Foundry
Samsung Foundry, being one of the few foundries that can actually manufacture chips under 5nm, means that it’s the next stop a lot of these companies look at, after TSMC. While Samsung has struggled building mobile chips in recent years, especially for Exynos and the early Tensor chips in Google Pixel, they have been building other chips for other applications.
With the ongoing AI boom, companies need more chips than ever before. As more data centers are being built, and more AI applications are being created, mostly with stuff being done “in the cloud”. This is a big reason why your next smartphone is going to be a lot more expensive than you were expecting. We’re already seeing a lot of mid-range smartphones go up about 50% compared to last year. AI is making RAM, storage, and now CPU components even more expensive globally.
If these companies do opt to use Samsung Foundry, it could end up returning to profitability after a pretty long time.
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