In the context of: Samsung will use the most advanced manufacturing process to manufacture chipsets for four well-known technology companies. The race to overtake TSMC as the world’s largest chip foundry is on, while geopolitical struggles are tearing apart the age-old economic balance.
It was Samsung Chosen as a manufacturing partner by four of the world’s largest technology companies, according to unnamed industry sources. Nvidia, Qualcomm, IBM and Baidu will employ the South Korean company’s latest manufacturing process to bring their future products to market, while Samsung hopes to gain ground over TSMC in the chip foundry race.
Samsung will use the recently unveiled 3nm node to supply fabless companies’ chip supplies in bulk starting in 2024. Nvidia will use the 3nm node to build its next generation of GPUs, IBM will make its own CPUs, and Qualcomm needs an arm. chipset for smartphones, and Baidu will use 3nm for its cloud data centers.
Samsung has started manufacturing 3nm chips on a large scale back in june. The company says its latest manufacturing technology delivers significant improvements in power efficiency (45%) and chip performance (23%) over the previous-generation 5nm node.
The second generation of the 3nm process is already in development, as Samsung points out there is still plenty of room for more efficiency and performance improvements.
While the company is making strides in the 3nm race, Samsung is the second-largest chip foundry behind TSMC, which nearly triples Samsung’s market share. TSMC is expanding its manufacturing base outside of Taiwan new plants in the United States Let’s start with Meanwhile, Samsung already has an international business approach, with manufacturing plants in South Korea (Giheung, Hwaseong, and Pyeongtaek), the USA (Austin and Taylor), and China (Xian).
Samsung is known for its leadership in the memory business, but the current geopolitical situation could help it gain ground over TSMC to become a competing manufacturing superpower. Many “big tech” companies are looking for new partnerships as well, in an effort to reduce their dependence on manufacturers in China amid the growing diplomatic and economic struggle between Washington and Beijing.