AMD can manufacture processors at Samsung

The processor maker AMD had its own factories for manufacturing for a long time. As a result of rampant costs, the factories were spun off almost 13 years ago to Globalfoundries, which until 2019 was the exclusive manufacturer of AMD’s processors. Since then, AMD has been manufacturing virtually all of its products using TSMC’s 7-nanometer technology.

However, it took only a few months at TSMC before the manufacturer, due to underinvestment, did not have sufficient capacity to meet the needs of its customers, including AMD. When the corona pandemic swept the world in the first half of 2020, the situation worsened. In other words, during almost all of its time at TSMC, AMD has had problems obtaining sufficient circuits.


At the end of November, it was reported that a dissatisfied AMD was turning its attention to Samsung for manufacturing, information that is now getting water on its mill. In a mailing to clients, Gokul Hariharan, an analyst at the finance company and commercial bank JP Morgan, writes that AMD will probably start manufacturing processors on Samsung’s 4-nanometer technology by the end of 2022.

According to the mailing, the processors should be intended for laptops according to Google’s concept Chromebook. The latter probably means that these are processors in the budget segment and the reason given is precisely the lack of capacity at TSMC. However, the majority of all AMD’s products will continue to be manufactured at TSMC, with which AMD will switch to manufacturing at 5 nanometers by the end of 2022.

Limited production at Samsung could be a first step towards something bigger. AMD is also said to be considering manufacturing other products, such as graphics circuits, on Samsung’s 3-nanometer technology in 2023 and 2024. However, most of AMD’s processors for servers, laptops and desktops are likely to continue to be manufactured by TSMC on its 3-nanometer technology, with which AMD is not expected to go into production until 2024.

Source: JP Morgan via @MarcTheShark83

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