AMD reportedly leaves Samsung Foundry, shifting attention towards 4nm manufacturing from TSMC Arizona. Not only is this a show of faith ahead of TSMC’s 2nm debut, which has seen an unprecedented demand compared across Nvidia, Apple, and many others, but it also marks a big loss for Samsung considering its nodes graced both consumer Ryzen and Epyc server CPUs.
According to @Jukanlosreve on X, AMD has had a change of heart, swaying it away from Samsung’s SF4X silicon manufacturing process. Team Red had initially planned to dual-source its chips between Samsung and TSMC, supplying its Epyc server processors, Ryzen desktop CPUs, and Radeon GPUs. However, recent reports claim that the brand is aiming to consolidate production with TSMC due to its manufacturing advantages.
While TSMC’s fabrication advancements are part of the equation, having US-located manufacturing probably plays an important role in this decision. This should ensure that AMD’s chips don’t get affected by the ongoing and constantly changing import duties imposed by US authorities on foreign-made materials and products. Furthermore, this negates the potential advantage Intel may have had thanks to its in-house US manufacturing, putting both CPU brands on equal footing regarding import duties.
This adds to Samsung’s hurdles in reaching the yields and efficiency levels necessary to compete in the semiconductor market. The brand’s first-generation 3nm process (SF3E) utilising Gate-All-Around (GAA) transistors has struggled with low production yields. These have been reported to be quite low, around 20%, which is significantly below the company’s internal target of 70%. That said, the company continues to improve, claiming that yields are starting to reach 50% to 60% on its first-generation 3nm process. This issue has cost Samsung many clients who have switched to TSMC’s more reliable production.
TSMC’s Arizona Fab 21 facility has commenced high-volume production of 4nm chips, reported to be already manufacturing AMD Ryzen 9000 series CPUs and Apple A16 Bionic SoCs, offering shorter delivery routes, tax incentives, and reduced geopolitical risks. Furthermore, AMD has secured access to TSMC’s upcoming 2nm process for its next-generation Epyc Venice processors, indicating a deepening partnership.
TSMC keeps attracting interest from all brands thanks to its leading processes. Plus, with its growing US fabrication presence, the chip manufacturer hedges against changes in the political world, all while strengthening its supply lanes – a thing that giants like Nvidia would gladly take.
