Samsung and TSMC Competing in order to secure foundry customers

Also, big foundry clients such as Qualcomm, Nvidia, and Tesla are stepping towards reducing their reliance on a certain foundry partner.

Samsung and TSMC Competing in order to secure foundry customers

Reportedly, it has been seeming like the competition between two tech giants which is Samsung Electronics and Taiwan’s TSMC has gradually increased. This is intended, in order to secure foundry customers. As per the foreign media claims, big foundry clients such as Qualcomm, Nvidia, and Tesla are stepping towards reducing their reliance on a certain foundry partner.

While in this regard, an IT media outlet recently reported that Qualcomm will be instructed in order to produce the Snapdragon 8 Gen 2 with both TSMC and Samsung Electronics. It is predicted that the new chip will be produced through a 4 nm process. The same has two versions, which are a standard version and a customized version with enhanced performance. On the other side, Samsung Electronics will be responsible for the production of the customized version respectively.

Earlier, it is reported that Qualcomm was associated with Samsung for the production of the Snapdragon 8 Gen 1. Also, it merged with TSMC for the making of the Snapdragon 8+ Gen 1 announced in May of this year. At the same time, industry experts believe that Qualcomm’s decision in regards to outsourcing part of the Snapdragon 8 Gen 2 production to Samsung. It suggests that the Korean company has been able to capture Qualcomm’s trust in the cutting-edge process to some extent.

Samsung Electronics associated with TSMC for the making of the RTX40 series

Samsung Electronics has lost its foundry customers to TSMC. It is due to concerns about the yields of its 4-nm and 5-nm processes. Nvidia, a large customer of Samsung Electronics, partnered with TSMC for the production of the RTX40 series. The next-generation graphics processing unit (GPU) was unveiled in September.

Additionally, Samsung Electronics has also lost its foundry customers to TSMC due to concerns about the yield of its 4 nm and 5 nm processes. Furthermore, Nvidia, which is a large customer of Samsung Electronics associated with TSMC for the making of the RTX40 series. It is the next-generation graphics processing unit (GPU) disclosed in September.

Also, Taiwanese media outlets simultaneously reported that Tesla approached TSMC to make semiconductors for next-generation full self-drive (FSD). On the other hand, Samsung Electronics succeeded in the mass production of 3 nm chips. It is way before TSMC in the first half of the year. It results in raising the yield of its 4 nm and 5 nm process, whereby it secures competitiveness.

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