Samsung seizes 2nm AI chip deal, challenging TSMC’s reign

[Fred Chen]

Samsung seizes 2nm AI chip deal, challenging TSMC's reign - TechHQ

The inaugural deal for 2nm chips marks a significant milestone for Samsung, signaling a challenge to TSMC and its dominance.

techhq.com

"In a notable turn of events disclosed during Samsung’s Q4 2023 financial report, the tech world buzzed with news of Samsung’s foundry division securing a prized contract for 2nm AI chips. Amid speculation, Samsung maintained secrecy about the identity of this crucial partner.

But earlier this week, a revelation from Business Korea unveiled that the patron happens to be Japanese AI startup Preferred Networks Inc. (PFN). Since its launch in 2014, PFN has emerged as a powerhouse in AI deep learning, drawing substantial investments from industry giants like Toyota, NTT, and FANUC, a leading Japanese robotics firm."

"Ironically, PFN has had a longstanding partnership with TSMC dating back to 2016, but is opting to shift gears from here on out, going with Samsung’s 2nm node for its upcoming AI chip lineup, according to a knowledgeable insider. PFN also chose Samsung over TSMC due to Samsung’s full-service chip manufacturing capabilities, covering everything from chip design to production and advanced packaging, sources revealed."

Interestingly, Samsung has a near-negligible shrink compared to 3nm (SF3):

As expected, "Samsung is gearing up to entice customers with discounted rates for its 2nm process, a move poised to shake up the semiconductor landscape. With its sights set on Qualcomm’s flagship chip production, Samsung aims to lure clients away from TSMC by offering competitive pricing."

 

[Barnsley]

At what point would Sansung aim to not be giving discounts?

Or would Samsung aim to offset by shafting their suppliers?

 

[delong.height]

Intel has won $15B lifetime value on 18A announced today and won Microsoft. I see Samsung falling behind significantly compared to the day IFS started.

 

[hskuo]

Intel has won $15B lifetime value on 18A announced today and won Microsoft. I see Samsung falling behind significantly compared to the day IFS started.

If assumed 18A wafer price to be $30k/wafer, $15B means 500k wafers lifetime order. If manufactured at 30kwpm Fab, it will be ~17 months output. Good start.

 

[nghanayem]

Intel has won $15B lifetime value on 18A announced today and won Microsoft.

Intel said that was across the whole of external IFS wins (be it packaging, intel 16, 3, or 18A), not for just 18A.

 

[Fred Chen]

At what point would Sansung aim to not be giving discounts?

Or would Samsung aim to offset by shafting their suppliers?

With Intel's foundry announcement, we can expect Samsung to continue competing by price.

 

[Barnsley]

Hope they dont go too low for the employees sake , its a long way back!

With Intel's foundry announcement, we can expect Samsung to continue competing by price