AMD and Samsung Team Up for Market Growth with New 3nm Chips

Advanced Micro Devices, Inc. is set to broaden its partnership with Samsung Electronics Co.  to develop advanced 3-nanometer chip technology. This move enhances their ongoing collaboration on graphics processing units (GPUs) and high-bandwidth memory (HBM) chips, both essential for artificial intelligence applications.

Industry experts believe that this joint effort in 3nm technology will help Samsung compete more effectively with Taiwan Semiconductor Manufacturing Co. , according to a report from the Korea Economic Daily.

At the imec ITF World 2024 conference in Belgium, AMD CEO Lisa Su revealed plans to begin mass production of next-generation chips using 3nm Gate-All-Around (GAA) technology. Currently, Samsung is the only company that has commercialized GAA-based 3nm chip processing.

Su’s statement is interpreted as confirming AMD’s collaboration with Samsung on 3nm foundry work, especially since TSMC’s 3nm capacity is fully booked by clients like Apple Inc. The expanded partnership involves a multi-year agreement that will see AMD’s Radeon graphics technology integrated into Samsung’s Exynos processors, along with the supply of HBM chips and comprehensive packaging services.

AMD has recently reported holding a 33% share of the server CPU market. The company is also preparing to introduce its “Turin” processors and expand its GPU product line following the MI300 series.

AMD’s stock has risen by 37% over the past year. Investors can gain exposure to AMD through the Invesco AI and Next Gen Software ETF and the iShares Semiconductor ETF Market 

Update: As of the latest premarket check on Wednesday, AMD shares had decreased by 1.24%, trading at $169.49.

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