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AMD Could Tap Samsung To Increase CPU & APU Production

Samsung Logo Box DG AH 01 2020
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Prominent chipset maker AMD may be looking to its long-time partner Samsung to increase CPU and APU production. That’s based on recent reports centering on news shared via South Korean tech forum Clien.

Now, the veracity of the claim has not been verified as of this writing. But AMD is purportedly looking to increase production across its high-end and budget chipsets by as much as 50-percent. The company has typically turned to TSMC for its production but that company won’t be able to meet its needs. In particular, because it has its hands full with its deal with Apple.

As a result, Samsung may be chosen as an extension of existing deals between the two companies, specifically extending deals centered on Samsung Exynos chipsets. And the new deal, according to the source, would center on the production of 3nm AMD chips.

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Why would AMD tap Samsung for CPU and APU production?

Now, TSMC is presently the world’s largest when it comes to chip production. The company even recently plotted out plans for a new facility in the country to grow further and garner more US clientele. That investment is costing TSMC as much as $12 billion. And it will open, if all goes according to plan, in 2024.

Samsung, conversely, isn’t letting that move by TSMC stand without an answer. The South Korean tech giant plans to open its own foundry in the US, in Texas, with operations starting in 2023. And that foundry, a $10 billion investment, will be focusing its efforts around 3nm chips.

Because of that ongoing rivalry, and because Samsung will be ready more quickly to begin production on 3nm chips, the deal seems like one Samsung might welcome. Especially since Samsung’s own chips and AMD’s CPU and APU offerings don’t directly compete.

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None of that necessarily makes a deal here likely

All of that is, however, only if AMD plans to jump to 3nm in the immediate future and if TSMC can’t meet its orders. With no official announcement from Samsung or AMD, it remains to be seen if there’s any weight to the rumors.