NVIDIA may partner with Samsung Foundry to produce its next-generation gaming graphics processing units (GPUs). If this is true, it could be a massive win for the Korean firm, as its foundry division has faced challenges with yield rates with its Exynos processors. Securing clients like Nvidia should significantly increase Samsungโs foundry business.
NVIDIAโs ongoing GPU supply chain issues
Recently, Nvidia has faced supply chain disruptions and a shortage of GPUs. Its gaming GPU sales dropped 11% year-on-year in Q4 last year (USD 2.5 billion). According to Colette Kress, Nvidiaโs Chief Financial Officer, โGaming GPU shipments in the fourth quarter of fiscal year 2025 (November 2024-January 2025) were affected by supply chain disruptionsโ (courtesy of Korean outlet Hankyung).
This suggests the company is not getting sufficient parts to make all the graphics cards as needed. As of now, TSMC exclusively produces gaming GPUs for Nvidia. Last year, Jensen Huang, CEO of NVIDIA, asked TSMC to โincrease capacity,โ but TSMC reportedly couldnโt fulfill the demand. The Taiwanese firm is busy making things for many other companies, like Apple.
โIt is difficult for NVIDIA to entrust the production of the RTX 50 to Samsung right now, but it seems that it will seriously consider a multiple supply chain strategy for next-generation products,โ Hankyung reports, citing an industry insider. Interestingly, Samsung plays an important role in NVIDIAโs latest RTX 50-series GPUs, as they use Samsungโs GDDR7 memory chips.
NVIDIA and Samsungโs past partnership on the RTX 30 series
It is worth mentioning that NVIDIA has previously worked with Samsung on GPU production. Back in 2020, Samsung made NVIDIAโs RTX 30 series using its 8nm process. However, yield issues made NVIDIA go all-in on TSMC for the next generations of gaming GPUs, such as the RTX 40 series.
Samsung has implemented a dual-track approach to the process of creating innovative 2nm and 3nm processes as well as luring 4nm and 5nm clients simultaneously. With Samsungโs progress, NVIDIA may return to this partnership to make the supply chain more stable.
