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Samsung to manufacture Nvidia's latest gaming chips: sources

All News 15:31 September 02, 2020

SEOUL, Sept. 2 (Yonhap) -- Samsung Electronics Co. will manufacture Nvidia Corp.'s latest gaming chips, industry sources said Wednesday, as the South Korean tech giant eyes to expand its presence in the foundry industry.

Nvidia's new RTX 3000 series graphics processing units (GPUs) will be produced by Samsung's 8-nanometer (nm) process node, according to the sources. Nvidia's latest chips will be about 10 percent faster than other Samsung-made chips fabricated with the same 8-nm process, they added.

The U.S.-based graphic card titan has been relying on Taiwan Semiconductor Manufacturing Co. (TSMC) for its chip production, but the latest collaboration offers Samsung more growth momentum in its foundry business.

Last month, IBM Corp. announced that its POWER 10 chip will be manufactured by Samsung using its 7-nm technology.

Samsung has vowed to invest 133 trillion won (US$112 billion) to become the world's No. 1 logic chipmaker by 2030 and bolster its competitiveness in the system LSI and foundry businesses.

This photo provided by Samsung Electronics Co. on May 21, 2020, shows the company's chip plant in Pyeongtaek, south of Seoul. (PHOTO NOT FOR SALE) (Yonhap)

Samsung, the world's largest memory chip producer, trails far behind TSMC in the foundry market. According to market researcher TrendForce, Samsung is estimated to have a 17.4 percent market share in the global foundry industry in the third quarter of the year, while TSMC is expected to continue its dominance with a 53.9 percent market share.

Analysts said the deal with Nvidia will boost sales of Samsung's foundry business and increase its chance of getting more manufacturing orders from other chip designers.

"Samsung's foundry business has had lots of experiences of making smartphone-use small chips," said Kim Yang-jae, an analyst at KTB Investment & Securities. "But the latest deals with IBM and Nvidia provide a good reference for Samsung mass-producing PC-use big chips."

Kim added the orders from IBM and Nvidia could also lead to Samsung securing deals with two other American semiconductor giants, Advanced Micro Devices (AMD) Inc. and Intel Corp., in the future.

kdon@yna.co.kr
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