Samsung is Nvidia; Baidu It will produce 3nm chips for Qualcomm and IBM. | So Good News
In content: Samsung will use its most advanced manufacturing process to produce chips for four well-known technology companies. As the race to overtake TSMC as the world’s largest chipmaker begins, geopolitical conflicts are shattering the old economic balance.
Samsung has been selected as a manufacturing partner by four of the world’s largest technology corporations, according to unnamed industry sources. Nvidia Qualcomm, IBM and Baidu will use the South Korean company’s latest manufacturing process to bring their future products to market, while Samsung hopes to join TSMC in the chip foundry race.
Samsung will use the recently unveiled 3-nanometer node to supply a wide range of companies’ chips starting in early 2024, while Nvidia will use the 3nm node to build its next-generation GPUs. IBM will make its own CPUs and Qualcomm needs Arm. Chips for smartphones and Baidu will use 3nm for its cloud data centers.
Samsung began mass production of 3nm chips in June. The company says their latest manufacturing technology offers significant improvements in power efficiency (45%) and chip performance (23%) compared to previous generation 5nm nodes.
Samsung is already developing a second-generation 3nm process because there is still plenty of room to improve performance and performance.
While the company is making strides in the 3nm race, Samsung is the second-largest chip maker behind TSMC, which has three times the market share of Samsung. TSMC is working to expand its manufacturing outside of Taiwan, starting with new factories in the United States. Meanwhile, Samsung already has an international business approach as it owns factories in South Korea (Giheung, Hwaseong, Pyeongtaek), USA (Austin, Taylor) and China (Xian).
Samsung is known for leading the memory industry, but the current geopolitical situation could help TSMC become a rival manufacturing superpower. Many “big tech” companies are looking for new partners to reduce their reliance on China-based manufacturers amid growing diplomatic and economic tensions between Washington and Beijing.