Samsung courts Google, AMD for AI chip manufacturing amid TSMC capacity crunch

Samsung Electronics is experiencing a surge in inquiries for advanced chip manufacturing services, driven by the high demand for artificial intelligence infrastructure that is straining the capacity of industry leader TSMC. Global tech giants, including Google, AMD, Tesla, and BYD, are reportedly approaching Samsung to discuss contract manufacturing for their next-generation AI chips.

Google, in particular, is said to be in talks with Samsung regarding the production of key components for its upcoming AI chip, codenamed 'Icefish.' Further discussions involve the potential manufacturing of Google's next-generation Axion processor, expected around 2028, and Tensor Processing Units (TPUs) for AI workloads, possibly starting the same year.

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Samsung Electronics has received an increasing number of chip manufacturing inquiries from Google, AMD, Tesla, BYD, and other global clients.

AMD is also reportedly in negotiations with Samsung to collaborate on future CPU production. This increased interest highlights Samsung's growing importance as a foundry, especially as TSMC, the dominant player, faces capacity limitations despite its significant investments in expanding production.

TSMC, along with Samsung and Intel, represents the elite group of foundries capable of mass-producing the most advanced semiconductors. However, TSMC has secured the majority of orders from major clients like Nvidia, Apple, AMD, and Broadcom, leaving little room for additional advanced chip manufacturing. While TSMC has announced substantial plans to increase its capacity, the current demand is pushing clients to explore alternatives like Samsung.

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Google is reportedly discussing with Samsung the possibility of producing its next-generation Axion processor (expected around 2028) and is also considering asking Samsung to produce a portion of its Tensor Processing Units for artificial intelligence computing workloads as early as 2028.