Samsung may be close to winning a major AMD 2nm chip order

Samsung Foundry is emerging as a viable alternative to TSMC which simply does not have enough 2nm capacity to offer all of the companies that need advanced chipsets made.

AMD has been in discussions with Samsung for some time now, and a new report out of South Korea claims that the company may soon sign a deal with Samsung Foundry for 2nm chip production.

Discussions between AMD and Samsung are reportedly progressing steadily. AMD CEO Lisa Su visited South Korea in March this year. She toured Samsung's massive semiconductor manufacturing complex in Pyeongtaek. The report mentions that concrete results from these discussions are likely to materialize in the near future.

CPU demand is likely to increase considerably as we enter the era of agentic AI, which would require both GPUs and CPUs to autonomously perform tasks. AMD is one of the world's top CPU suppliers and is expected to see a surge in orders for its products to meet the AI demand.

The bulk of AMD's CPU production is handled by TSMC but it's already believed to have booked much of its 2nm and below capacity through 2028 and beyond. Shifting orders to Samsung Foundry would enable the company to expand its supply base.

Samsung won't just benefit from making chips for the company. AMD has also signed an MoU to source memory chips from Samsung for its AI products, so this relationship could translate into billions of dollars for the Korean conglomerate.

It would also be a significant win for Samsung Foundry, which has already inked a $16.5 billion deal with Tesla and is believed to be in talks with Apple for a foundry deal as well.