Samsung Electronics Foundry Gains Google AI Icefish TPU Order and Reports Strategic Financial Turnaround Through 2nm Yield Improvements and Global Client Contracts
With the acquisition of new prestigious orders, the Samsung Electronics foundary unit begins to glimpse an increase. US technological news The Information report says the tech giant Google is considering having their new generation AI hardware critical components manufactured on Samsung's fabricated lines. If the collaboration goes ahead it may represent a major change of course for Big Tech firms when it comes to the allocation of their silicon manufacturing requirements in order to overcome supply chain congestion.
The deal concerns Google's 10th gen TPU, internally codenamed Icefish and planned for mass production in 2028. To overcome widespread manufacturing bottlenecks across the sector, Google is to take a split production strategy. So it is proposed that TSMC manufacture the central computational processor chip with its cutting edge 1.4nm technology. On the other hand, it is being speculated that Samsung will take on the task of fabricating the input output memory die with its own 2nm process technology. The aforementioned is considered to be a particularly important component as it will serve as the connection with high bandwidth memory.
According to The Information's analyses, Google has chosen Samsung for the input output memory die manufacturing task because South Korea has a full command of the specifications related to high bandwidth memory. Beyond its manufacturing role, speculation also suggests that Samsung may be responsible for advanced packaging. In this scenario the manufactured processor chip would be sent over to South Korea for integration with Samsung's own high bandwidth memory modules and the 2nm input output die.
The addition of the aforementioned Google contract to its portfolio would be a significant turning point for Samsung's foundary business which has consistently operated at a loss in recent quarters. Its foundry unit is already showing clear signs of recovery. Samsung has managed to keep the yield rate of its 2nm process technology between 55 60%. Such operational progress is in addition to other substantial business contracts, most notably its US$17.3 billion (23 trillion KRW) artificial intelligence chip manufacturing agreement with Tesla.
The company is furthermore extending its relationships with other major hardware designers. Both industry leaders Qualcomm and AMD have entered negotiations with Samsung for 2nm foundry services. Samsung has also teamed up with Anthropic to act as a strategic infrastructure partner, with the possibility to produce customized logic chips for their AI applications. In addition, the South Korean manufacturer is currently producing the logic processing units of Nvidia's upcoming Vera Rubin AI accelerators.
These market developments have prompted market analysts to forecast an impending financial turnaround of Samsung's manufacturing division. The combined business of foundry and System LSI is predicted by Kiwoom Securities to record an operating profit of US$29 million (39 billion KRW) for the next quarter. Although a full year of positive results is not expected until next year, the quick turnaround in profit within a single quarter indicates that its foundary unit has now successfully turned around.
