en.Wedoany.com Reported - Driven by the artificial intelligence boom, the world's largest chip foundry, TSMC, is nearing full capacity, prompting an increasing number of major companies to seek alternative chip production channels. According to Asian media reports, Samsung is becoming the preferred partner for these companies. Sources reveal that the South Korean electronics giant has seen a significant increase in chip manufacturing inquiries and orders from both existing and new clients, including AMD, Google, Tesla, and Chinese companies such as Chinese electric vehicle manufacturer BYD.
Reports from a few days ago indicated that Google might use both TSMC and Samsung for the production of its next-generation TPUs. Although this is only part of Google's 10th-generation TPU, planned for launch in 2028, it is still a major success for Samsung as a foundry. Nikkei Asia reported that, in addition to Google, Chinese electric vehicle manufacturer BYD is also in talks with Samsung regarding future semiconductor production, specifically for autonomous driving chips.
An executive from a Chinese automotive chip developer, who spoke on condition of anonymity, stated that TSMC prioritizes advanced process production because it not only strengthens its technological leadership and long-term strategy but also because these processes yield higher profits and remain in tight supply. The executive noted that Samsung's yield rate still lags behind TSMC's, but its capacity availability makes it an increasingly attractive option. Due to tight order volumes at TSMC, some Chinese chip developers have turned to Samsung for chip production instead of relying solely on one foundry. Another chip industry executive added that geopolitical factors are also prompting some U.S. clients to use multiple foundries for chip production when possible. A senior chip industry source said that TSMC's advanced chip capacity is fully loaded, making it difficult for Chinese clients with smaller order volumes to submit new orders, leading some to turn to Samsung for future opportunities.
Tesla is also among them. The U.S. electric vehicle manufacturer currently has its AI4 chips, used in cars and robots, produced by Samsung, while the upcoming AI5 chips are manufactured by TSMC. However, for the next generation, Tesla will once again turn to the South Korean company, with the $16.5 billion AI6 chips to be produced by Samsung at a new semiconductor factory in Texas. Nevertheless, this chip manufacturing strategy is only affordable for large enterprises, as chip development must be coordinated with production, and switching foundries requires substantial investment, such as in research and development and supply chain coordination.
For Nvidia and AMD, two major TSMC clients, the benefits of leveraging higher capacity from other manufacturing partners outweigh the additional costs. According to Nikkei Asia, due to current capacity bottlenecks, AMD is collaborating with Samsung on multiple chip projects involving future processors, expected to be produced by Samsung starting in 2028. However, the companies involved have not responded to confirm this. Samsung stated it does not comment on clients, BYD declined to comment, and Google said it does not comment on details of its supply chain.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
