AMD considers Samsung for 2nm AI chips: goal to reduce dependence on TSMC

AMD would be evaluating a significant diversification of its supply chain in the advanced semiconductor sector. According to rumors from South Korea, the company led by Lisa Su is reportedly in advanced talks with Samsung Foundry to utilize the 2-nanometer manufacturing process intended for future CPUs and AI accelerators. Rumors regarding this had already circulated at the end of last year, but they are now back in the spotlight.

So far, AMD has built its success in the processor and GPU market by relying almost exclusively on the manufacturing and packaging technologies of TSMC. However, the growing demand for AI hardware is creating strong pressures on the production availability of the most advanced processes, driving several customers of the Taiwanese company – including rumored Apple – to seek alternatives or complementary suppliers.

According to the report, the discussions between AMD and Samsung gained momentum after Lisa Su's visit to Samsung's Pyeongtaek manufacturing facility in March. During that occasion, the progress of the 2nm manufacturing technology developed by the Korean giant was assessed.

The need to expand production capacity is primarily related to the strong demand for AI solutions for datacenters. AMD itself has recently confirmed that the demand for CPUs and GPUs intended for artificial intelligence is growing rapidly, to the point of creating availability constraints along the entire supply chain.

The products potentially involved in the agreement would be the future CPUs based on Zen 6 architecture, known by the code names Venice and Verano. Venice would represent the high-performance computing-oriented proposal, while Verano would be an optimized variant for agent-based and inferential AI workloads.

It should be noted that TSMC remains – and will remain – AMD's main partner for the most advanced processes. The Taiwanese foundry has already confirmed that the Venice CCD chiplet will be the first product made using the N2 process based on nanosheet transistors. For this reason, Samsung is seen more as a strategic support and an additional source of production capacity rather than a direct substitute. In fact, in recent hours, several sources have referred to the South Korean company as a "backup solution."

Samsung, for its part, is trying to strengthen its position in the contract manufacturing market, where TSMC currently holds a significant advantage in terms of market share and manufacturing maturity. The yields of Samsung's 2nm GAA process are reportedly still lower than those of its Taiwanese competitor, but agreements with companies like AMD and Tesla could represent an important injection of confidence.

Meanwhile, Intel is also aiming to position itself as a credible alternative to TSMC, offering technologies such as 14A, 18A-P, and EMIB to attract external clients in the contract manufacturing segment.

The boom in artificial intelligence could redefine the balances in the semiconductor sector in the coming years. With the production capacity of the most advanced processes now saturated for several years, large companies are seeking every possible additional source of wafers to support the growth in demand.