Yahoo Finance Samsung Unveils Chip Technology Road Map to Win AI Business
(Bloomberg) -- Samsung Electronics Co. unveiled a number of forthcoming advancements to its technology aimed at luring makers of AI chips to its manufacturing business.
Most Read from Bloomberg
What to Know About the Deadly Flesh-Eating Bacteria Spreading in Japan
Stocks Rise After Solid US Industrial Production: Markets Wrap
Citi Pitches Money-Moving ‘Crown Jewel’ as Central to Revamp
Flesh-Eating Bacteria That Can Kill in Two Days Spreads in Japan
These Are the World’s Most Expensive Cities for Expats in 2024
Though Samsung is the world’s No. 1 memory-chip maker, it has been trying to catch up with rival Taiwan Semiconductor Manufacturing Co. in the foundry market, where companies manufacture customer-designed chips. Samsung laid out its chipmaking road map and outlined its vision for the artificial intelligence era at its annual foundry forum Wednesday at its US chip headquarters in San Jose, California.
Samsung’s share in the foundry market slid to 11% in the first quarter of this year from 11.3% in the previous quarter, while TSMC’s share climbed to 61.7% from 61.2% during the same period, according to TrendForce.
The South Korean chipmaker’s earnings are recovering, helped by demand for components used in AI computing systems. That’s bolstering its main memory chip division and also providing opportunities to win outsourcing orders.
But Samsung has to prove its production is advanced and reliable enough to attract bigger commitments from demanding customers such as Nvidia Corp., which produces AI accelerators that are a must-have for all large technology companies. Samsung also faces a nascent challenge from Intel Corp., which is opening its plants in an attempt to win orders from former rivals.
Advances in production technology, usually signified by smaller and smaller transistor dimensions, helps improve the performance of the electronic components. The race to smaller dimensions is key to winning orders for AI processors, some of the highest performing and most expensive chips in use.
The advanced process introduced by Samsung uses so-called backside power delivery network technology, which places power rails on the backside of a silicon wafer. Such technology enhances power, performance and area while significantly reducing the drop in voltage, compared with its first-generation 2-nanometer process, the company said.
Samsung also argues its ability to offer logic, memory and advanced packaging will help it make rapid progress in winning outsourced semiconductor manufacturing orders for AI-related chips.
The company predicted on Wednesday that its AI-related customer list will expand fivefold and revenue will increase by nine times over current levels by 2028. The company announced several new types of production technology and a layout for future AI-related chips that it said will help it win customers.
Samsung executives declined to comment on the status of its attempts to supply the latest advanced memory chips to Nvidia or respond to reports that it hasn’t yet been able to achieve qualification of such chips at the US company.
Samsung also touted its gate-all-around — or GAA — technology, which is key for AI products. The company plans to mass produce its second-generation 3-nanometer process in the second half of this year and deliver GAA on its upcoming 2-nanometer process. In 2022, Samsung became the first in the industry to begin GAA-based 3-nanometer mass production.
The chipmaker affirmed that its preparations for 1.4-nanometer are progressing smoothly, with performance and yield targets on track for mass production in 2027.
Most Read from Bloomberg Businessweek
Google DeepMind Shifts From Research Lab to AI Product Factory
Coke—and Dozens of Others—Pledged to Quit Russia. They’re Still There
Trump’s Planned Tariffs Would Tax US Households, Economists Warn
©2024 Bloomberg L.P.
