In an attempt to take advantage of the AI boom, Samsung‘s contract manufacturing division will combine its global No. 1 memory chip, foundry, and chip packaging capabilities to offer customers a one-stop shop.
In order to capitalize on the AI boom, Samsung Electronics (005930.KS) opened a new tab and announced that its contract manufacturing division will provide a one-stop shop for customers to expedite the production of their AI chips by combining its global No. 1 memory chip, foundry, and chip packaging capabilities. The time it takes to develop AI chips, which is typically weeks, has been reduced by about 20% thanks to clients having access to a single channel of communication that simultaneously leads Samsung’s memory chip, foundry, and chip packaging teams, the company said on Wednesday.
“Generative AI is revolutionizing the technology industry; we are genuinely living in the age of AI,” declared Siyoung Choi, President and General Manager of Foundry Business, during a Samsung gathering in San Jose, California. With AI chips leading the way, Choi stated that Samsung anticipates global chip industry revenue to reach $778 billion by 2028. Executive Vice President of Foundry Sales and Marketing Marco Chisari stated that the business thinks OpenAI CEO Sam Altman’s approximate predictions of skyrocketing demand for AI chips are reasonable during a pre-event briefing with the media.
According to a recent report, Altman expressed his desire to construct approximately thirty new chip facilities for executives at contract chipmaker TSMC (2330.TW). One of the rare businesses that designs, develops, and sells memory chips all under one roof is Samsung. This combination has historically worked against it since several customers were concerned that doing business with its foundry would make Samsung more competitive in another industry. But Samsung thinks their turnkey strategy will be a strength moving ahead, given the rapidly increasing demand for AI chips and the requirement for all chip components to be well integrated in order to train or infer massive quantities of data quickly while using less power.
The innovative gate-all-around (GAA) transistor architecture, which the South Korean tech behemoth also emphasized, helps enhance chip performance while consuming less power. As chips get increasingly refined to the point of defying physics, GAA is thought to be crucial to the further development of more potent chips for AI. While rivals like the world’s top foundry, TSMC, are also developing chips using GAA, Samsung began utilizing GAA earlier and said that it will begin mass producing its second-generation 3-nanometer circuits with GAA in the second part of this year. Additionally, Samsung revealed its most recent 2-nanometer chip-making technique for high-performance computing devices, which improves power delivery by positioning power rails on the wafer’s back.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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