Meta has teamed up with Samsung Electronics’ System LSI division for custom chip development. This signaled the company’s plans to expand its in-house silicon for its hardware ecosystem. However, in an unexpected turn of events, the project seems to have hit a roadblock. Reports from Korean media claim that it has been paused at Meta’s request. Unfortunately, the exact reasons behind this are not clear at the moment.
Meta reportedly ends custom chip development partnership with Samsung
According to Korean media reports, Meta has asked Samsung to temporarily halt work on the custom chip. Currently, it’s not clear how far development had progressed before Meta changed its mind. This certainly looks like a lost opportunity for Samsung. Had the project gone ahead, not only would it have generated revenues from chip development, but it would have also generated considerable revenues from production for the South Korean giant.
While Meta reportedly sought a temporary pause of the project, it’s not clear if or when it will resume. Neither Meta nor Samsung has commented on this matter publicly. This brings up questions of whether it is because of technical challenges or changes in Meta’s chip development roadmap.
Yet another roadblock for Samsung
This is another blow for Samsung, as it has already hit a roadblock on another chip project for a different client, OpenAI. The tech giant had been working on an inference neural processing unit (NPU) for OpenAI. It’s said to have made significant progress in the early development stage. However, due to strategic differences between Samsung and OpenAI, the project has slowed down. It’s not clear whether this will move forward.
With two major companies reconsidering their chip development projects with the South Korean giant just days apart, it’s certainly not a good look for Samsung. Additionally, it’s also losing revenue.
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