Looking for an Alternative to TSMC, AMD sat down with Samsung
AMD started negotiations with Samsung for 2nm chip production. Wanting to overcome the capacity constraints at TSMC, the company aims to diversify its production.
AMD is considering using Samsung’s 2nm technology for the production of new generation processor and accelerator models. The company is in advanced talks with Samsung to diversify its production capacity.
AMD is experiencing a bottleneck in its production processes due to the high demand for processors and graphics units for data centers. The company, which currently carries out most of its chip production through TSMC, is turning to new alternatives to overcome the restrictions in the supply chain.
Seeking Diversity in Production Processes
The fact that TSMC’s 2nm production capacity will be fully filled by 2028 pushes AMD to look for different solution partners. AMD CEO Dr. Lisa Su’s visit to Samsung Pyeongtaek facilities in South Korea last March is seen as an important step in this cooperation process.
The negotiations with Samsung focus especially on the new generation processors to be produced with 2nm technology. In this context, Venice, which has a computation-oriented Zen 6 architecture, and Verano, which is designed for inferential artificial intelligence workloads, are planned to be produced in Samsung facilities.
Samsung was also previously preferred for the production of Tesla’s AI5 and AI6 chips. TSMC continues to maintain its position as the first production partner of AMD’s Venice CCD products.
Sectoral Competition and Capacity Problems
Although Samsung’s efficiency rates in 2nm GAA chip production are not yet at TSMC levels, a possible agreement with AMD is considered an important indicator of trust. In the sector, Intel continues its race to be a strong alternative to TSMC with its 14A, 18A-P and EMIB technologies.
This intense competition in chip production reveals how much the demand for artificial intelligence technologies has deepened the supply constraints on the hardware side.
The companies continue to expand their strategic partnerships to secure production capacity. Do you think AMD’s diversification of its production processes with Samsung could be a solution to the chip supply crisis?
