AMD Rumored to Shift 4nm Chip Orders from Samsung Foundry to TSMC US
The intricate world of semiconductor manufacturing is always bubbling, and word has surfaced of a possible significant shift. It is rumored that AMD might be pulling its 4nm chip orders from Samsung Foundry, possibly redirecting that business to competitor TSMC, more specifically their factory in the United States.
A Speed Bump for Samsung Foundry
Samsung's chip-making business has had a hard time gaining and retaining large clients compared to industry leader TSMC. Although it has had ample production capacity, it has been hard to achieve that premium market share. If these AMD rumors are accurate, it would be yet another letdown.
AMD had reportedly been working closely with Samsung, exploring their SF4X process not just for server chips (EPYC) but perhaps Ryzen processors and Radeon graphics as well. This "dual-sourcing" strategy, which had seemed like a big win for Samsung at one point, might now be falling apart at least to some degree. Losing a major client like AMD would not be a good thing as Samsung strives to build its reputation in the high-risk foundry industry.
Why the Potential Move to TSMC's US Fab
While exact reasons are unverified, rumor points to several possibilities. Samsung's comparatively slower progress or yield problems could be one factor. Meanwhile, TSMC's growing presence in Arizona, USA, offers strategic advantages for customers such as AMD.
AMD already has an extremely close partnership with TSMC. They've already secured a capacity deal for their future "Venice" EPYC server chips on TSMC's cutting-edge 2nm technology and are also producing consumer chips like the Ryzen 9000 series there. It looks like this partnership is only getting stronger, which may be granting AMD priority access to TSMC's latest and greatest.
All Eyes on TSMC's 2nm "Gold Rush"
Discussing TSMC's 2nm process (N2), it's generating tremendous hype. The majority believe that this node could trigger the next "gold rush" for the company, perhaps even more popular than their runaway successful 3nm generation.
What makes N2 so special.
- It marks TSMC's shift to a novel transistor structure (GAAFETs or nanosheets) allowing for optimization either for higher speed or lower power.
- It promises a nice performance gain, around 10-15% faster speeds compared to on their previous N3E node.
- Reports say the technology is ramping up fast with the defect rates already looking comparable to mature nodes.
The list of potential customers is essentially a who's who of technology giants. Apple is rumored to be a big customer, assumedly for future iPhones. NVIDIA is also reportedly join the next-generation architectures. Quite surprisingly, AMD was actually the first customer to publicly announce their use of TSMC's N2 for their Zen 6 "Venice" CPUs, indicating they are committed in a big way.
Early demand for N2 is expected to be so robust that it may outstrip supply. TSMC is ramping up, with large-scale wafer production on schedule by the end of the year and further expansion in the pipeline, including bringing N2 production to Arizona by 2028.
What's Next
While current momentum seems to be in TSMC's corner, Samsung is not out of the race. They've already supposedly garnered interest from industry heavyweights like NVIDIA for their own 2nm process and are claiming their yield rates are improving. The foundry war is far from over, but AMD's supposed switch certainly adds another compelling page to the book.
