Samsung Electronics streamlines AI chip production with integrated services

Samsung introduces one-stop shop for AI chips

Samsung Electronics stated on Wednesday that its contract manufacturing division wants to revolutionise AI chip manufacturing by providing a one-stop shop for customers. This strategy combines Samsung's global leading memory chip, foundry, and chip packaging services to fulfil the growing need for AI technologies.

Accelerated production timeline

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By allowing clients to communicate through a single channel that coordinates Samsung's memory chip, foundry, and chip packaging teams, Samsung has cut the time necessary to develop AI chips by around 20 per cent. Typically, AI chip manufacture takes several weeks. "We are truly living in the age of AI - the emergence of generative AI is completely changing the technology landscape," said Siyoung Choi, President and General Manager of Foundry Business, at an event in San Jose, California.

Market growth and industry projections

Samsung expects worldwide semiconductor industry sales to reach $778 billion by 2028, driven primarily by AI chips. Marco Chisari, Executive Vice President of Foundry Sales, and Marketing, shared similar optimism and supported OpenAI CEO Sam Altman's estimates of growing AI chip demand. Altman has reportedly expressed a desire to develop over three dozen new chip plants, highlighting the sector's tremendous expansion.

Strategic advantage and technological innovations

Despite previous customer reservations about Samsung's dual status as a competitor and service provider, the company's integrated strategy is now viewed as a competitive advantage in the age of artificial intelligence. Samsung's comprehensive service package enables high integration of all chip elements, which is critical for efficiently processing huge datasets with low power consumption.

Samsung also demonstrated its advanced gate-all-around (GAA) transistor architecture, which improves chip performance and efficiency. The South Korean corporation, an early adopter of GAA technology, intends to commence mass manufacturing of second-generation 3-nanometer circuits employing GAA in the latter part of this year. Samsung also introduced its latest 2-nanometer chipmaking technology, which enhances power delivery by inserting power rails on the backside of the wafer and is set for mass production in 2027.

Competitive landscape

Samsung's disclosure comes as other companies, including industry leader TSMC, are developing GAA-based processors. However, Samsung's early adoption of this technology may provide it an advantage in the AI chip industry. Samsung's merger of its many services under one banner could provide them with a substantial advantage in meeting the needs of the developing AI sector.

(With inputs from Agencies)