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Nvidia is considering outsourcing some of its artificial intelligence GPUs to Samsung Electronics

Update time : 2023-07-07 11:49:03

Nvidia is reportedly considering outsourcing some of its artificial intelligence GPUs to Samsung Electronics for manufacturing as TSMC's supply capacity becomes increasingly tight. Industry watchers point out that Samsung is likely to receive some orders from Nvidia if its 3nm test product passes performance verification and its 2.5D advanced packaging technology meets the requirements of US chipmakers.

South Korean media Chosun Biz recently reported, citing local semiconductor industry sources, that Nvidia is in discussions with Samsung about contract production of chips, and their performance verification discussions are based on state-of-the-art processes. Most South Korean industry insiders believe Samsung is unlikely to receive a large-scale order from Nvidia, but due to the challenge of relying solely on TSMC to meet all its AI GPU orders from customers, the U.S. chipmaker may not rule out Samsung as a second fab partner.
With the rise of AI-related services, IT companies are aggressively purchasing GPUs to build AI data centers. Market Watch estimates show that the global GPU market size could grow from $19.711 billion in 2021 to about $33.463 billion by 2028, with a compound annual growth rate of 7.85%. Currently, the AI GPU market is dominated by Nvidia and AMD, but Nvidia has more than 90% of the market when it comes to AI GPUs used to drive large language models (LLMs) like ChatGPT.
In response to surging demand for AI GPUs, Nvidia may partner with Samsung to mitigate the risk of supply shortages, some industry analysts said, even though the South Korean manufacturer's 3nm manufacturing process has yet to achieve stable production performance. Therefore, in addition to obtaining performance verification for its 3nm test chips, whether Samsung's advanced packaging technology can meet Nvidia's requirements is another key factor in determining a potential partnership between the two parties.
In order to upgrade its packaging technology, Samsung just established the Multi-Chip Integration Alliance (MDI) in June this year, aiming to expand the partner ecosystem, continuously improve stacking technology, and actively invest in 2.5D and 3D packaging technology. In contrast, TSMC has been deeply involved in its own 2.5D CoWoS packaging technology for many years, and has successfully used this technology to improve chip computing performance, becoming the preferred fab partner for AI and HPC chip manufacturers. Samsung has fulfilled Nvidia's GPU orders in the past, including producing the GeForce RTX 30 series using the 8nm process in 2020 and manufacturing 14nm mobile GPU chips before that. However, Nvidia has outsourced production of all of its current flagship A100 and H100 GPUs that support ChatGPT and other artificial intelligence applications to TSMC.

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