Samsung Nears 2nm Chip Manufacturing Deal with AMD

Samsung’s foundry division appears to have attracted AMD with its 2nm process. The two companies have reportedly begun official discussions on a chip-making deal involving the most advanced node. If the contract pans out, it could play a big role in recovering the Korean firm’s foundry business.

Samsung is in talks with AMD for chip production

A few months ago, reports suggested Samsung may make AMD’s next-generation chips using its 2nm process. However, things are now moving toward reality, with discussions progressing toward an agreement. According to Edaily, Samsung’s foundry division is now advancing talks with AMD about orders for 2nm chips. The discussions likely began when AMD CEO Lisa Su visited Korea in March.

Industry watchers expect the talks to materialize soon. This comes amid rising global demand for high-performance chips for artificial intelligence (AI) infrastructure. CPUs play a key role in executing complex tasks. Currently, AMD mostly depends on Taiwan-based chipmaker TSMC for its CPU.

However, TSMC is seeing capacity pressure because of massive orders from key clients such as Apple, Nvidia, and Tesla. A considerable portion of its 2nm production capacity is already booked for a few years. This has made it tougher for buyers to secure TSMC’s advanced node space. As a result, many chip designers are now seeking other foundry partners.

AMD’s decision to partner with Samsung shows its intention to diversify the supply chain. The Korean firm’s 2nm node has already proved its capability, powering some Galaxy S26 and S26+ models. The process is also expected to further improve in yield and performance in the coming months. So, for AMD, this node could become a stable and reliable option.

Meanwhile, Samsung is also gearing up to make Tesla’s next-generation AI chips, including the AI6 and AI5. Both chips could be based on the 2nm process. The production may take place at the Korean giant’s Taylor plant in the US.