Samsung Hits Snag in Meta Custom Chip Project

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Samsung has suffered a setback in its ambitions to develop a custom chip for Meta. The project has reportedly been put on hold after Meta requested a temporary pause. It is unclear when, or if, the collaboration will resume, but the industry sees this project as a solid opportunity for the Korean firm’s chip design business.

Samsung and Meta’s AI semiconductor project sees uncertainty after temporary suspension

Since last year, Samsung and Meta have been working on a custom system-on-chip (SoC) development project. The Korean firm’s System LSI division, which designs advanced chips, was handling the work. The two companies planned a large-scale contract worth tens of trillions of won if it entered mass production.

However, Meta asked to temporarily suspend the project, leading Samsung to pause the advanced development work. The term temporary suspension suggests it is not fully canceled. While collaboration could resume in the future, there is no exact timeline yet. As of now, the reason for this move remains unclear.

This comes after Samsung hit a setback in its custom SoC project with OpenAI. The Korean firm had been developing custom chips with OpenAI using ARM-based technology. However, the project was halted at the client’s request. Now, the Meta case also follows a similar path, adding pressure on the System LSI division.

Samsung aims to grow its System LSI business, meeting clients’ needs in the AI semiconductor space. Last year, the company even set up a dedicated unit for custom SoC development. Led by Vice President Park Bong-il, the team started with about 70 employees.

The good news is that Samsung may have attracted another AI client, Anthropic. The Korean firm recently joined the AI company as a strategic partner through an investment round. Industry watchers say this could open new opportunities for the System LSI and Foundry businesses.

Written by

Binay Konwar

Binay Konwar started his blogging journey in 2014 and has since written plenty of tech articles. At present, he is working as a News Writer at SammyGuru, covering everything about Samsung. He holds a Master's degree in Mathematics, but his real passion lies in tech and writing. In his free time, he enjoys playing chess and watching movies.

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