Samsung Electronics is exploring the manufacturing of a new AMD chip on its second-generation 2 nm process (SF2P), in a move that, if confirmed, would strengthen the narratives of a “recovery” for its foundry division following a particularly tough year in results.
According to reports from South Korea, Samsung’s semiconductor business (DS) is in discussions with AMD to produce a chip designed by the American company using the SF2P node. As a preliminary step, both parties plan to conduct a Multi-Project Wafer (MPW), a testing batch where multiple designs share a single wafer to validate performance and characteristics before committing to large-scale production.
An MPW to test if the node meets AMD’s requirements
The key point is both technical and commercial: the MPW would serve to evaluate whether Samsung can deliver the performance levels AMD requires at this node. As explained in the available information, the final decision on a contract is expected to be made by January of next year.
While the product hasn’t been officially specified, industry sources interpret that AMD’s order could be for a next-generation CPU.
Why this customer would be important for Samsung
This news comes at a time when Samsung Foundry needs volume and flagship contracts. The report notes that the division has faced a challenging period, with accumulated losses in the first half amounting to approximately 4 trillion won (4조 원), and that the company is seeking to reverse this trend through new agreements with major tech companies. In this context, securing AMD — one of the leading firms in CPU and GPU design — would provide a significant boost to both reputation and business prospects.
Additionally, a structural element favors Samsung: the pressure on TSMC, the market leader. The same reports indicate that demand is so concentrated that TSMC is finding it more difficult to absorb additional capacity, and that its prices have increased, making Samsung’s alternative more attractive to certain customers.
What’s at stake (and what’s not yet certain)
For now, the approach is cautious: validate first and decide later. This means that no finalized deal is being announced, but rather negotiations are underway with a specific milestone (MPW) and an approximate timetable (January).
Samsung’s goal is clear: to turn a potential success at 2 nm into a signal that its foundry can better compete in the most advanced segment of the market. For AMD, the incentive is to diversify and secure capacity in a landscape where availability and costs at the market leader could become bottlenecks.
If you like, I can prepare a more financial-focused version (potential impact on margins, capacity, capex, investor insights) or a more technical one (what SF2P entails and why MPWs are such a critical filter).
via: sedaily