Samsung streamlines AI chip production

The company expects the global chip industry revenue to reach $778 billion by 2028, driven by AI demand.

 Electronics, Hardware, Printed Circuit Board, Business Card, Paper, Text, Electronic Chip, Computer Hardware

Samsung Electronics is stepping up its game in the AI chip market by streamlining its contract manufacturing process to offer clients a comprehensive, one-stop shop. By integrating its top-tier memory chip, foundry, and chip packaging services, the tech giant aims to accelerate AI chip production by about 20%. The new approach allows clients to work with a single communication channel, significantly reducing the production time for AI chips. At a recent San Jose, California event, Siyoung Choi, President and General Manager of Samsung’s Foundry Business, highlighted the transformative impact of generative AI on the technology landscape.

Looking ahead, Samsung projects the global chip industry revenue to reach $778 billion by 2028, mainly driven by the demand for AI chips. Executive Vice President of Foundry Sales and Marketing, Marco Chisari, echoed this optimism, agreeing with OpenAI CEO Sam Altman’s predictions of a sharp increase in AI chip demand. Unlike other companies, Samsung’s unique combination of selling memory chips, offering foundry services, and designing chips under one roof has often been seen as a competitive disadvantage. However, the rising demand for highly integrated AI chips that process large datasets quickly and efficiently is turning this setup into a competitive advantage.

Samsung is also making strides in chip architecture with its cutting-edge gate-all-around (GAA) technology. The advanced transistor architecture improves chip performance while reducing power consumption, which is crucial for developing more powerful AI chips as they become smaller. While other competitors, including TSMC, are also advancing in GAA technology, Samsung has a head start and plans to mass-produce its second-generation 3-nanometre chips using GAA later this year. Furthermore, Samsung unveiled its 2-nanometre chipmaking process for high-performance computing chips, with mass production scheduled for 2027, positioning itself at the forefront of the AI chip revolution.