Samsung is making strategic moves to strengthen its foothold in the semiconductor market by pursuing next-generation GPU orders from NVIDIA. In a bold step toward future profitability, Samsung Foundry is undergoing major restructuring. The company has decided to move away from competing with TSMC for “node supremacy” and is instead focusing on advancing existing and upcoming projects, particularly the 2nm node.
According to Korean media reports, Samsung Foundry is vying for 2nm orders for NVIDIA’s next-gen GPUs, which include both consumer and AI models. This pivot comes at a crucial time when the chip industry needs alternatives, as TSMC’s production lines are becoming increasingly congested with advanced processes like 2nm.
Samsung has had challenges in the past, specifically with the 3nm GAA node due to yield rate issues. However, the 2nm GAA process appears promising, boasting a 40% yield rate and on track for mass production by the end of the year. Securing NVIDIA as a partner could be a game-changer for Samsung. They’ve already established trust by supplying 8nm for the Tegra SoC used in the Nintendo Switch 2. If Samsung successfully ramps up 2nm production, it could become a formidable competitor to TSMC.
Additionally, Samsung is exploring opportunities beyond wafers, aiming to secure NVIDIA’s supplies of HBM3E and HBM4. Their DRAM segment has shown significant improvement, and they have also earned AMD’s trust by supplying HBM3E for Instinct MI355X AI accelerators. This indicates potential recovery and growth in the HBM business.
Samsung Foundry’s efforts to secure these key partnerships and improve their technology could significantly influence its trajectory and the broader semiconductor industry. The coming months will be critical as they look to turn the tide in their favor.
