Tuesday, May 6th 2025
AMD Reportedly Shifts from Samsung to TSMC's 4nm Arizona Facility
AMD has reportedly decided to move its 4 nm chip orders from Samsung to TSMC's facilities in Arizona, United States. This is a significant loss for Samsung, as AMD had been working closely with Samsung on the SF4X process for EPYC server processors, Ryzen APUs, and Radeon graphics cards. It's worth noting that in May 2023, AMD announced the exact opposite—moving from TSMC to Samsung for some of its 4 nm CPUs. This partnership was an important part of AMD's strategy to use multiple manufacturers; however now appears to be failing. Reports indicate that AMD's decision comes from concerns about the stability and consistency of Samsung's manufacturing process, leading AMD to cancel plans for mass production of graphics chips using Samsung's 4 nm technology.
These changes in manufacturing strengthen TSMC's leading position in the chip manufacturing industry, even though relying on a single manufacturer creates geopolitical risks. AMD continues to deepen its relationship with TSMC, committing to use TSMC's advanced 2 nm technology for its upcoming "Venice" processors, which have completed testing at TSMC's Arizona facility and remain on schedule for release in 2026. Meanwhile, Samsung Electronics has reportedly achieved better-than-expected results in testing its SF2 (2 nm) process, with initial yields above 30%. The company plans to stabilize this process in the second half of 2025 to begin mass production of the Exynos 2600 mobile chip. Building on this progress, Samsung is reportedly close to securing an agreement to manufacture Qualcomm's Snapdragon 8 Elite 2 using its new 2 nm process.
Source:
TrendForce
These changes in manufacturing strengthen TSMC's leading position in the chip manufacturing industry, even though relying on a single manufacturer creates geopolitical risks. AMD continues to deepen its relationship with TSMC, committing to use TSMC's advanced 2 nm technology for its upcoming "Venice" processors, which have completed testing at TSMC's Arizona facility and remain on schedule for release in 2026. Meanwhile, Samsung Electronics has reportedly achieved better-than-expected results in testing its SF2 (2 nm) process, with initial yields above 30%. The company plans to stabilize this process in the second half of 2025 to begin mass production of the Exynos 2600 mobile chip. Building on this progress, Samsung is reportedly close to securing an agreement to manufacture Qualcomm's Snapdragon 8 Elite 2 using its new 2 nm process.
10 Comments on AMD Reportedly Shifts from Samsung to TSMC's 4nm Arizona Facility
4nm LPP+ is a mature and stable node, if it wasn't Samsung wouldn't be producing tens of millions of Exynos units for its Galaxy products. Either the initial rumor was false, or it was true and TSMC only offered a discount to keep AMD orders.
In any case, we should be cheering for underdogs here. TSMC monopoly is not a good thing.
www.notebookcheck.net/Exynos-2400-2200-2100-die-shots-highlight-the-chips-evolution-over-the-years.832760.0.html
They hit 75% years ago, today it should be much more stable. Exynos 2400(137.44 mm2) is twice the size of Zen5's CCDs, and also larger than the IO die in 6nm and much larger than the IO die would be in 4nm LPP.
Another possible reason is that Samsung's fabs in the US don't have the same capacity or yields as the one in South Korea.
Also, what power use was that yield? Was that yield seen on dies that pull 60+ watt, or ones that pull 10?You got me there.Samsung has no 4nm fabs in the US, the CHIPS funding for the new 4nm facility was only approved a year ago, both to build the new Taylor plant and upgrade the Austin plant. Samsung's existing 4nm production lines are located at Hwaseong and Pyeongtaek in South Korea. Giheung is scheduled to be upgraded.
image.semiconductor.samsung.com/content/samsung/p6/semiconductor-us/sas/chips-and-science-act_240416/samsung-factsheet-chips-final.pdf
semiconductor.samsung.com/foundry/manufacturing/manufacturing-sites/#:~:text=U.S-,Korea,the%20most%20complex%20manufacturing%20challenges.
It would seem very silly to me that Samsung would finally get their act together, produce a great 4nm node, then totally fall asleep at the wheel and not bother building out significant capacity, especially when cutting edge nodes are so profitable.
Counter to this point: Samsung already has issues with slowing demand and excess fab capacity:
www.eetimes.com/samsung-slows-opening-of-texas-fab-despite-chips-stimulus/#:~:text=%E2%80%9CAnother%20worry%20for%20them%20is,backlog%20for%20the%20first%20quarter.%E2%80%9D
They slowed production of 4 and 5nm by over 50%
www.chosun.com/english/industry-en/2025/02/13/UZ2KA6B2HVEL7BMTD2XTIIG2RM/#:~:text=Exclusive:%20Samsung%20lifts%20foundry%20shutdown,at%20full%20capacity%20by%20June
So.....something isnt adding up. they have all this excess capacity and no yield problems, yet AMD continues to overpay for TSMC?
My guess would be that yield of "75%" only applies to their smallest low power chips, and trying to build the substantially more power hungry zen 5 CCDs on it tanked yields to the point that its not considered viable. It works for Samsung, between being lower power and not having to pay themselves as a middle man, similar to intel, but makes no financial sense for outside customers.
The node that AMD is interested in is 4HPC not 4LPP+, it just started volume production this year so yields are probably not that good compared with previous 4 nm nodes like 4LPP+.Well if you have short memory then I'll remind you that a few years back Samsung had the best node, before that it was Intel. Things never stay the same.