Samsung Electronics is enhancing its contract manufacturing business by offering a one-stop shop for clients to expedite the production of AI chips. By integrating its memory chip, foundry, and chip packaging services, Samsung is able to cut down the time it takes to make AI chips by around 20%. The company believes that the AI boom is transforming the technology landscape and expects the global chip industry revenue to reach $778 billion by 2028.
The President and General Manager of the foundry business at Samsung, Siyoung Choi, emphasized the importance of AI in the current technological era. With projections indicating a significant increase in demand for AI chips, Samsung is positioning itself as a key player in meeting this growing market need. OpenAI CEO Sam Altman’s ambitious plans to build new chip factories align with Samsung’s commitment to leveraging AI technology.
Samsung’s unique position in the industry, offering memory chips, foundry services, and chip design under one roof, has been a point of contention in the past. Some clients were concerned about potential conflicts of interest in doing business with Samsung across different chip-related areas. However, with the rising demand for AI chips and the necessity for integrated chip components to handle large amounts of data efficiently, Samsung believes its turnkey approach will be advantageous.
The company is also highlighting its advanced chip architecture called gate all-around (GAA), which improves chip performance and lowers power consumption. GAA technology is crucial for developing more powerful AI chips as the industry continues to push the limits of chip design. While competitors like TSMC are also working on GAA chips, Samsung has been an early adopter of this technology and plans to begin mass production of its second-generation 3-nanometer chips in the second half of the year.
In addition to GAA technology, Samsung has announced its latest 2-nanometer chipmaking process for high-performance computing chips. This new process involves placing power rails on the backside of the wafer to enhance power delivery, with mass production scheduled for 2027. By continuously innovating in chip design and manufacturing processes, Samsung aims to remain at the forefront of the AI chip market and meet the evolving demands of the technology landscape.
