Samsung Electronics is broadening its 2-nanometer foundry customer base beyond mobile to include artificial intelligence (AI), high-performance computing (HPC), and automotive sectors. While TSMC, the leading foundry provider, is expanding its mobile chip clientele, Samsung is differentiating itself by offering memory, foundry, and advanced packaging services from a single source.
According to industry sources, Samsung is accelerating its efforts to secure major clients in the AI and HPC sectors as it expands production of its second-generation 2-nanometer process in the second half of the year. In its second-quarter earnings report, Samsung noted that collaborations with 2-nanometer HPC customers are increasing, and it plans to diversify its portfolio to include AI, HPC, automotive, and aerospace.
Real-world applications are also expanding. U.S. AI semiconductor company Ambarella is developing a next-generation edge AI platform using Samsung's 2-nanometer process for applications in robotics, drones, and autonomous machines. Samsung has previously collaborated with Ambarella to produce chips for advanced driver-assistance systems (ADAS) using its 5-nanometer process.
Among its key clients is Tesla. Reports indicate that Samsung has begun trial production and yield verification of Tesla's AI5 chip at its Taylor, Texas, facility. While TSMC also supplies a different version of the AI5 chip, Samsung's proactive acquisition of large customer volumes in the AI and autonomous driving sectors is significant. This partnership is expected to strengthen further with the next version, the AI6 chip. Unlike TSMC, which has recently secured supply contracts with Chinese and Taiwanese smartphone manufacturers, Samsung is not solely focused on mobile.
Samsung's competitive edge lies in its comprehensive semiconductor supply capabilities. The company can provide memory, such as high-bandwidth memory (HBM), advanced foundry services, and packaging all in-house. By bundling logic chips, HBM, and packaging to meet the demands of AI accelerator customers, Samsung aims to broaden customer options within the TSMC-centric foundry supply chain. The company is pushing for double-digit growth in foundry revenue this year by expanding design orders for AI and HPC and increasing sales to customers in the U.S. and China.
Recently, TSMC's tight production capacity has created opportunities for Samsung to expand its customer base. According to Reuters, the share of Samsung's foundry revenue from AI and HPC is expected to rise from 15-20% at the end of last year to over 30% this year. Collaborations with major clients such as Tesla, Broadcom, and NVIDIA have also been announced.
Lee Min-hee, a researcher at BNK Investment & Securities, stated, "As TSMC's production capacity tightens and prices increase, customers are shifting to competitors like Samsung and Intel."
* This article has been translated by AI.
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