Meta Shifts Next Generation MTIA AI Chip Production To Samsung 2nm Node In 10 Trillion Won Deal To Secure Supply Chain And Support 5GW Data Center Goals
Meta is planning to shift production for its next generation of customized artificial intelligence silicon over to Samsung. A Seoul Economic Daily report claims this involves a contract value of up to 10 trillion Korean won. This transition signifies a major departure from the company procurement cycles as the first and second generations of the Meta Training and Inference Accelerator (MTIA) modules were solely fabricated by TSMC.
The new partnership stipulates that Samsung will produce the third through fifth generations of Meta bespoke silicon on its 2nm process node. An initial batch of over 100000 physical chips is anticipated. To fulfill the ambitious goal of achieving a 5GW data center footprint, Meta necessitates a relentless roadmap where a new generation arrives every 6 months. Consequently, through its dedicated chip design branch, Samsung will co develop the architecture for these upcoming modules.
Although TSMC has typically maintained a dominant position in the production of advanced semiconductors, all of its manufacturing capacity is currently locked in for first and second tier clients. This bottleneck, combined with the willingness of Samsung to provide one stop co development solutions from the earliest design phases, prompted Meta to select it as the optimal partner to diversify its supply chain. This joint model enables Meta to both safeguard its supply chain and accelerate its product rollout.
In addition to cooperating with Meta, Anthropic is also investigating the feasibility of using the Samsung 2nm process node to develop its own customized AI chips. Industry insiders argue that these exploration efforts are part of a comprehensive Anthropic initiative designed to become infrastructure independent and reduce dependence on third party GPU providers. Anthropic contemplates the development of a 1GW AI data center with a total expenditure of 50 billion US dollars. Of this total sum, 50 percent is believed to be directed toward semiconductors, including custom AI chips, DRAM, and NAND.
Samsung is strategically positioned to capitalize on these infrastructure investments as it is one of the few companies with vertically integrated capabilities for high speed memory manufacturing, foundry services, and advanced packaging. According to industry experts, this permits the company to present turnkey solutions to hyperscale clients who would otherwise encounter assembly line delays.
Samsung has experienced a considerable expansion in its pipeline of orders for bespoke chips, beginning with automotive and AI orders from Tesla during the last fiscal quarter. If Samsung manages to reach finalized agreements for automotive contracts with BYD in addition to the custom silicon orders from Anthropic, this would amount to a long term order backlog valued at 50 trillion Korean won for the foundry sector alone. This accumulation of high value manufacturing contracts has the potential to compensate for prior operating losses and may enable the company to return to profitability as early as the fourth quarter of this fiscal year.
