Samsung's recent actions aim to expand its influence in the semiconductor market, and now it has begun seeking orders for the next generation GPU from Nvidia.
Samsung's wafer foundry seems to be undergoing a large-scale restructuring. The recent announcement of several measures by the department has shocked many people, especially the decision to withdraw from the competition with TSMC for the "more advanced node hegemony". Samsung seems determined to achieve profitability through its wafer foundry business, so the company has shifted its focus to existing projects, most importantly the upcoming 2nm process node. According to reports, Samsung's wafer foundry is seeking orders for Nvidia's 2nm process for its next-generation GPUs, including consumer and AI grade GPUs.
Given that TSMC's production lines are no longer able to meet the excess demand for processes such as 2nm, the chip industry urgently needs alternatives, and Samsung seems to have seized the best opportunity. Samsung had poor luck on previous process milestones, such as 3nm GAA, mainly due to the company's inability to provide yield rates sufficient to meet market demand. But with the arrival of 2nm, this situation seems to have changed. Samsung's current 2nm GAA process yield is 40%, and it is expected to achieve mass production by the end of 2025.
Acquiring Nvidia as a partner is crucial for Samsung's wafer foundry, as Samsung has earned Nvidia's trust by providing an 8nm process foundry for the Tegra SoC used in Nintendo Switch 2. Given Samsung's ability to advance mass production of the 2nm process without delay, the company is likely to become a substitute for TSMC, thereby intensifying competition. Samsung is still expanding its 2nm process and is expected to launch the third generation 2nm node within two years to enhance performance.
In addition to wafer foundry, Samsung also hopes to supply HBM3E and HBM4 chips to Nvidia, as the company has made significant progress in the DRAM field. They also gained AMD's trust by supplying HBM3E chips for their Instinct MI355X AI accelerator, indicating the recovery of their HBM business.
