Could AMD switch its manufacturing from TSMC to Samsung?

Rumours are swirling that AMD may be considering moving its chip manufacturing to Samsung. This is a rumour that AMD may be considering switching to Samsung’s chip manufacturing. Its recent success stories, from Navi to Ryzen, were based on TSMC as its manufacturing partner. What’s the likelihood that AMD could abandon Taiwanese chip manufacturer TSMC?

The global semiconductor crisis continues. Major fabless companies, those without the silicon manufacturing capabilities of Intel, are fighting for limited wafer capacity to ensure they can sell their products in large quantities. Apple is the largest of these companies.

Because of the staggering sum of money that Cupertino has in its bank accounts, it is the first to fill the limited capacity offered by TSMC. This leaves other fabless companies like Qualcomm, AMD, and Nvidia fighting for what little they have. Even though it is a success story, AMD doesn’t have enough money to compete with larger companies to ensure sufficient chip supply. AMD has raised its GPU prices because of a rise in TSMC costs. This news was announced even in the last few days.

Most current-generation PCs and consoles sell out quickly. At this point, pathetic graphics card prices have become a common occurrence. DDR5 memory is being sold at ridiculous prices, and motherboards continue to climb in price due to component shortages. This is just the supply side. More people are working from home because of the pandemic. Because their smartphones and tablets don’t have enough power to handle multitasking and workflows, they need computers and laptops. We have more time to play video games because of lockdowns and more home time. This doubles the supply and demand.

Businesses know that they have an opportunity to capitalize and make large profits. However, it is crucial to find reliable suppliers of components. TSMC, a Taiwan-based chip manufacturer, is not the only one. It is, however, the most technologically advanced.

According to TSMCs 5nm node, AMD’s Zen 4 processors will be made. According to some reports, the next generation of Nvidia GPUs won’t be manufactured by Samsung but by TSMC. AMD may be outsourced to its more wealthy competitors because Apple consumes a lot of TSMC’s advanced node production capacities.

This brings us to Zen 5. It is a known fact that AMD will never partner with Intel. UMC and Global Foundries (AMD’s former fab division) aren’t competing with TSMC on cutting edge nodes. But Samsung is. AMD may have the unique position to partner with the Korean giant to produce its future products. We won’t see the benefits of such a partnership until at least a few more years. These decisions are made many years ahead of time because the design of the CPU and the node on which it is manufactured are closely linked. Zen 5 development is underway, so you can be certain that the documents have been signed.

The current geopolitical tensions cannot be ignored. China and Taiwan are not going away soon. It is certain that TSMC, a global leader in manufacturing, is a pawn in the minds of Chinese and Taiwanese leaders. If there is a supply shock, relying on one manufacturer could prove disastrous. However, if the political situation worsens, the loss in TSMC production would make the current shortage of semiconductors look like a few burnt muffins on a Sunday cake stall.

If AMD partners with Samsung, they will be neighbours. Samsung announced the construction of a $17B plant in Taylor, Texas, which is only a few miles from Austin. Guess who has a significant corporate presence here? It’s AMD. AMD.

Although such a geographic link might prove to be accidental, a USA-based mega foundry of cutting-edge mega technologies won’t need to travel far to find customers. AMD is one of them.

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Janine Joubert

About the Author: Janine Joubert

I am the Writer Working for The Daily News Global. I love to keep our readers updated with the latest Gaming News from all around the world without worrying about it.

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