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    Samsung Foundry aims to improve production of AI, high performance computing chips

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    Last updated: November 21st, 2023 at 09:02 UTC+01:00

    Samsung aims to improve the production of AI and HPC (High-Performance Computing) semiconductor chips as it is in a unique position. It is the only firm in the world that makes extremely advanced semiconductor chip chips, designs and makes DRAM chips, and offers advanced chip packing solutions.

    Samsung Electronics Foundry Business Manager Ki-bong Jeong said that Samsung has what it calls a GDP (Gate All Around + DRAM + Packaging) advantage. The company aims to improve its chip production market share through collaboration between Foundry, Memory, and Packaging businesses. It says it wants to diversify its chip fabrication business. Currently, the production of mobile application processors accounts for more than 50% of its revenue. However, it plans to sell more AI and automotive chips in the future. During a forum held for its investors in Hong Kong, Samsung introduced its GDP advantage.

    Vice President Jeong said during the investor forum, “Hyperscalers (large-scale data center operators), automobile OEMs (original equipment manufacturers), and Tesla, as well as other customers, came to us wanting chips of their own design. When asked why they came to us, it’s because Samsung has all three.” Samsung has secured orders to make 4nm AI chips, and this probably points to AI chips from Rebellions. The company also claimed that one of the biggest automobile firms (probably Tesla) in the world is planning to move to Samsung's 5nm technology.

    Some reports claim that Samsung Foundry is aiming to secure more orders for fabrication of advanced HPC chips, especially after the explosion of Generative AI technology over the past two years. The company faced sluggish sales in the third quarter of this year, but it received the largest number of orders in a quarter in its history. Around 54% of the chips it made were for mobile devices, while 19% were for high-performance computing. 11% of its orders were for automobile chips.

    Samsung Foundry aims to secure orders from big-name fabless semiconductor firms in North America, which probably points to AMD and Nvidia. Currently, the yield of its 4nm technology is around 75%, which is near that of TSMC's yield of 80%. In the meantime, it is improving the performance and yield of its 3nm (Gate All Around) chip fabrication technology, as well as starting the production of chips at its new plant in Taylor, Texas, USA.

    Business 4nmAIDRAMSamsung Foundry
    Galaxy AI summarized

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