From www.sammobile.com
Things haven’t been going very well for Samsung Foundry recently. Its struggles with the 3nm process have been very well documented, causing the company to potentially miss out on orders worth billions of dollars from the likes of Qualcomm and NVIDIA.
It has also seen slowing demand for its legacy processes, forcing the company to shut down some of its production lines to reduce costs. AMD was recently expected to utilize Samsung’s fourth-generation 4nm process node (SF4X), but the company has reportedly decided against it.
AMD’s reasons for walking away from the deal remain unknown
Samsung Foundry started mass production of chips on the SF4X process in March this year. Samsung has been making 4nm chips since 2021 and it has continued to upgrade the process technology since then. This latest iteration of the 4nm process featured Back End of Line wiring technology that reduces manufacturing costs and increases chip performance.
AMD was reportedly going to get its server CPU I/O dies made on this Samsung process because TSMC just didn’t have enough excess 4nm capacity to cater to AMD as well. Samsung may have been a more cost-effective option as well, since the company is known to compete with TSMC aggressively on price to win customers.
It’s unclear what changed, but a new report claims that AMD has decided not to go ahead with Samsung’s SF4X process to manufacture these chips. Perhaps it was able to secure capacity at TSMC or it’s just AMD angling for a better deal with Samsung, either way, it only adds to the foundry’s challenges.
Adnan Farooqui – Executive Editor
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First Samsung device: SGH-E900
Adnan Farooqui is a long-term writer at SamMobile. Based in Pakistan, his interests include technology, finance, Swiss watches and Formula 1. His tendency to write long posts betrays his inclination to being a man of few words.
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