AMD chooses TSMC and GlobalFoundries over Samsung for the order of advanced chips

A new report by DigiTimes has unveiled quite some bad news for the South Korean tech company i.e., Samsung. According to this report, Samsung will no longer receive the order for manufacturing advanced chips from AMD. Previously, Samsung was responsible for providing AMD with APUs and GPUs based on 14nm fabrication processes. However, with the more advanced chip processes like 5nm, 6nm, and 7nm the company has partnered with other companies. The advanced 5nm, 6nm, and 7nm fabrication processes will be utilized for chips like Zen 3, Zen 3+, and Zen 4.

According to the report by DigiTimes, AMD has collaborated with TSMC and GlobalFoundries. This partnership is almost three years long i.e., till 2025, TSMC and Global Foundries will serve as major allies of AMD. Well, this is not because of the fabrication technology. Since Samsung can deal with 5nm, 4nm as well as 3nm semiconductors.

In comparison, the 4nm and 5nm chips manufactured by Samsung are less efficient in their performance than the ones produced by TSMC. So, it might be the reason that AMD has chosen TSMC over Samsung. However, we are still unaware of the exact details.

Currently, the tech giant Samsung is going through a challenging phase. We have seen how the operating profit of the company hit its lowest in a time span of eight years i.e., in Q4 2022. In addition to this, the South Korean company is projecting its profit from the semiconductor business to be half for the following year in contrast to the previous year. Furthermore, the increasing prices of smartphone components can cause low profits in smartphone sales. All this situation and losing this deal make things even more difficult for the company.

Besides all these conditions and situations, some analysts predict that in 2024 things might get back on track for the semiconductor market. Till then, the only solution for Samsung to get out of these challenging times is to manufacture the forthcoming Snapdragon 8 Gen 3 chipsets of Qualcomm.