Samsung's foundry is stuck in doldrums these days, contending with a myriad of issues, including those relating to the yield and overall competitiveness of its cutting-edge chips. Yet, the South Korean giant is now reportedly looking towards Palantir and its phenomenal AI-enabled insights to fine-tune problematic processes.
For the benefit of those who might not be aware, Palantir is an AI-powered Software-as-a-Service (SaaS) provider that allows companies and government agencies to gather and analyze reams of data, enabling the detection of hidden patterns within complex datasets.
Now, as per a report out of South Korea, Samsung is purportedly working with Palantir to "improve semiconductor yield (ratio of good products in total production), quality, and productivity."
Do note that, if confirmed, this would be a highly aberrant pairing as semiconductor companies usually guard all the data related to their chip fabrication processes religiously.
This report of a partnership with Palantir comes as Samsung has reportedly canceled its 1.4nm process node for now, presumably in a bid to improve the yields on its 2nm GAA tech, which is expected to form the basis for the Exynos 2600 chips.
Meanwhile, Palantir is on a role right now, with revenue growing by 50 percent between 2022 and 2024, yet its headcount increased by only 3 percent. What's more, the company has managed to ink as many as ten different commercial partnerships over the past few days alone, including a very unusual partnership with its chief rival Databricks.
William Blair analyst Louie DiPalma recently summarized the positives and negatives for Palantir, touting the company's "combination of revenue growth (31% guidance for 2025) and operating margin (45% for 2025)" that ranks among the highest in the software industry, but cautioning against the stock's "high-beta correlation with the Nasdaq-100" that renders it vulnerable to market-wide shocks.
At the time of writing, Palantir shares are down a little over 1 percent in pre-market trading. The stock is down a whopping 30 percent over the past month, largely on valuation concerns.
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