Samsung Foundry Targets 2nm Manufacturing Orders for NVIDIA’s Next-Generation GPUs in Bid for Major Comeback

Samsung is strategically positioning itself to enhance its presence in the semiconductor market, actively courting NVIDIA for upcoming GPU orders. This shift marks a significant pivot in the company’s strategy as it seeks to bolster its foundry division’s profitability.

Samsung’s Path to Profitability: A Major Restructuring Initiative

Samsung Foundry is embarking on a comprehensive restructuring effort aimed at revitalizing its business model. Recent announcements have taken many by surprise, particularly Samsung’s choice to withdraw from the “node supremacy”contest with TSMC, a leading competitor in the semiconductor industry. With a renewed focus on current projects and the anticipated 2nm node, Samsung is determined to turn its foundry operations into a profitable venture.

According to a report from Korean media, Samsung is actively pursuing 2nm orders from NVIDIA for their next generation of GPUs, including both consumer and AI-targeted models. This collaboration could potentially reshape the landscape of semiconductor supplies.

Samsung Foundry Pursuing 2nm Orders for Nvidia GPUshttps://t.co/k34snJQv2Q

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The semiconductor industry is experiencing a pressing need for an alternative supplier, especially as TSMC’s production lines are nearing capacity for advanced nodes like 2nm. Samsung appears to be seizing the opportunity at a pivotal moment. Although the company faced challenges with previous nodes, particularly with the 3nm GAA, where yield rates fell short, the outlook for the 2nm process is promising. Currently, Samsung’s 2nm GAA process boasts a yield rate of 40% and is projected to achieve readiness for mass production by year-end.

Securing a partnership with NVIDIA is a significant achievement for Samsung Foundry. The company has previously earned NVIDIA’s confidence by producing 8nm chips for the Tegra SoC integrated into the Nintendo Switch 2. Should Samsung successfully initiate mass production of the 2nm process without delays, it could emerge as a formidable competitor to TSMC, enhancing dynamics within the semiconductor market. Additionally, Samsung plans to develop an advanced third-generation “SF2F+”node as part of its 2nm derivatives, set to deliver enhanced performance levels.

Samsung aims to implement the third-generation 2nm process within two years

Beyond wafer production, Samsung is also targeting NVIDIA’s supply of HBM3E and HBM4 memory, capitalizing on significant advancements in its DRAM segment. The company has also fostered a solid partnership with AMD, supplying HBM3E for the Instinct MI355X AI accelerators. These developments suggest a resurgence in the HBM market, making it an interesting time for Samsung Foundry as it strives to alter its trajectory and reclaim market share.

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