Samsung Foundry has secured significant deals in recent times, involving several tech giants, and this demonstrates that the division is poised to enter the mainstream chip segment.
Samsung's Recent Deals With Tech Giants Will Help Improve Operating Losses & Paving the Way For Newer Partnerships
The Korean giant has been making strides in the chip industry in recent months, entering collaborations with companies such as Apple, NVIDIA, and Tesla. Not only has this helped with capacity utilization, but Samsung is now seen as one of the stronger alternatives to TSMC in recent times, and this has defintely helped the firm improve its image in the semiconductor market. Based on a report from the Korea Herald, it is analyzed that recent deals secured by Samsung Foundry will help reduce the division's operating losses and position it as a direct rival to TSMC.
As foundry orders have been heavily concentrated in TSMC, client firms are now compelled to diversify their supply chains to reduce risks. Since Samsung Electronics is the only company besides TSMC capable of producing advanced chips at the 2-nanometer level, more business opportunities are likely to follow.
For those unaware, Samsung has recently secured an order from Apple for the development of next-generation image sensors, which will be integrated into future devices, such as the iPhone. Similarly, the Korean giant is also responsible for the production of NVIDIA's Tegra T239 SoC, which is utilized in the Nintendo Switch 2 and employs the firm's 8nm process. The order has contributed significantly to increasing capacity utilization for Samsung's mature nodes. Lastly, Tesla has placed orders of both AI5 and AI6 chips at Samsung as well, so the interest from Big Tech is there.
Samsung Foundry is one of the entities that is bringing the production of cutting-edge chips to the US, with 2nm expected to enter the Taylor facility in the upcoming years. More importantly, the firm is also ramping up its investment in America, with the intention of introducing advanced packaging services to the domestic market. In terms of the pursuit of manufacturing in the U.S., Samsung is indeed on-par with the likes of Intel and TSMC, and external customer adoption has boosted the firm's ambitions.
Follow Wccftech on Google to get more of our news coverage in your feeds.
