Samsung is one of the few companies in the world capable of manufacturing semiconductor chips on advanced process nodes (5nm and below). As global chip manufacturing capacity remains constrained, several companies, including AMD, Google, and Nvidia, are reportedly considering Samsung Foundry for the production of some of their future chips.
AMD, BYD, Google, Nvidia, and Tesla could use Samsung Foundry for their chips
According to a report (via X user Jukan) from Nikkei Asia, AMD, BYD, Google, Tesla, and Nvidia are increasingly looking at Samsung Foundry, Samsung Electronics’ contract chip manufacturing division, for advanced semiconductor production.
BYD, the world’s largest electric vehicle maker, has reportedly been in talks with the South Korean firm about manufacturing future autonomous driving chips. Google is also said to be engaging with Samsung Foundry regarding its next-generation Axion processors, which could launch in 2028. The internet giant is reportedly considering Samsung Foundry for the production of certain components used in future Tensor Processing Units (TPUs) for AI servers.
Groq, a company backed by Nvidia that develops Language Processing Units (LPUs), is already manufacturing its latest chips through Samsung Foundry. It is also said to be considering getting its next-generation chips made by the South Korean firm.
TSMC is still the top chipmaker, but Samsung could still get more contracts
TSMC is still widely regarded as the leader in advanced semiconductor manufacturing, as its process technology is generally considered superior to Samsung Foundry’s. Moreover, TSMC remains ahead in terms of yields on advanced process nodes such as 2nm and 3nm. However, with TSMC’s production capacity largely booked out, more companies are exploring dual-sourcing strategies that involve both Samsung Foundry and TSMC.
Google, which is working with MediaTek on future TPU designs, has reportedly been one of the driving forces behind this multi-sourcing strategy. MediaTek is said to be helping Google work with both TSMC and Intel.
Qualcomm and Tesla already work with both TSMC and Samsung Foundry. Elon Musk's firm Neuralink has reportedly offered Samsung the contract to make its next-generation brain implant chip. Tesla has also announced a partnership with Intel for future chip production.
However, using multiple foundries requires chip designs to be adapted for different manufacturing processes, increasing research and development costs as well as engineering complexity. As a result, this approach is typically adopted only by companies with substantial financial resources.
Due to the ongoing AI boom and continued supply constraints, more companies are reportedly approaching Samsung Foundry for future chip production. As a result, Samsung’s contract chip manufacturing business could return to profitability after a long time.
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