Samsung Electronics has announced an innovative shift in its contract manufacturing business. By integrating its top-tier memory chip, foundry, and chip packaging services, Samsung aims to offer a streamlined, one-stop solution for clients, significantly speeding up the AI chip production process, report Reuters.
At a recent event in San Jose, Siyoung Choi, President and General Manager of Samsung’s Foundry Business, emphasized the transformative impact of generative AI on the technology landscape. “We are truly living in the age of AI,” Choi proclaimed. The company projects global chip industry revenues will soar to $778 billion by 2028, driven by the increasing demand for AI chips.
Samsung’s new approach reduces the typical AI chip production time by about 20%, a critical enhancement in a market where speed and efficiency are paramount. By offering a single channel of communication that unifies its memory chip, foundry, and chip packaging teams, Samsung ensures a more cohesive and accelerated manufacturing process.
Marco Chisari, Executive Vice President of Foundry Sales and Marketing, supported this optimistic outlook during a briefing with reporters. He noted that OpenAI CEO Sam Altman’s ambitious projections for AI chip demand, which include the construction of approximately three dozen new chip factories, align with Samsung’s expectations.
Samsung’s unique position in the market is noteworthy. It is one of the few companies that combines memory chip sales, foundry services, and chip design under one roof. Historically, this has been a double-edged sword, with some clients wary of potential conflicts of interest. However, the soaring demand for highly integrated AI chips, which require seamless cooperation across different chip parts, is turning this comprehensive approach into a significant advantage.
Central to Samsung’s strategy is its cutting-edge gate all-around (GAA) transistor architecture. This technology enhances chip performance while reducing power consumption, a crucial factor as AI applications demand more efficient and powerful processing capabilities.
GAA is particularly important as chips become finer, approaching the physical limits of miniaturization. While competitors like TSMC, the global foundry leader, are also developing GAA-based chips, Samsung has an edge, having applied GAA earlier.
The company plans to begin mass production of its second-generation 3-nanometre chips using GAA in the second half of this year.
Further demonstrating its technological prowess, Samsung unveiled its latest 2-nanometre chipmaking process designed for high-performance computing.
This process innovatively places power rails on the backside of the wafer, enhancing power delivery. Mass production for this advanced technology is slated for 2027, positioning Samsung at the forefront of next-generation chip manufacturing.
Samsung’s integrated services and groundbreaking chip architectures position it as a pivotal player in the rapidly evolving AI industry.
With the demand for AI chips skyrocketing, Samsung’s comprehensive, turnkey approach and early adoption of advanced technologies like GAA provide a significant competitive edge.
As the world increasingly relies on AI-driven solutions, Samsung is well-equipped to meet the industry’s needs with speed, efficiency, and innovation.