Samsung Electronics is back in the game with a bang since it has already won the first 2 nm node artificial intelligence chip production contract from Japanese startup Preferred Networks Inc. (PFN).
These first orders from PFN of Japan appear to be a big win over TSMC in the game of advanced chip processing technology. Under the deal, Suwon, the South Korean brand ‘Samsung’, will manufacture AI accelerators as well as other AI chips, along with its latest 2nm chip processing technology for PFN.
It is known that PFN has been collaborating with TSMC since 2016, but here’s the fact: its next-generation AI chips are on Samsung’s 2nm node. The new deal between PFN and Samsung appears beneficial for both parties since PFN will get access to newer chipset technologies, which will permit it to also get an edge against the competition, whereas the Korean giant has secured an actual customer for its most advanced chip technology, gaining ground in its foundry market battle along with TSMC.
As per the reports, PFN is planning to forgo TSMC as Samsung offers a comprehensive chip-making service on a turnkey basis, from chip design to manufacture as well as upgraded chip packaging. But the point is that Samsung officials have refused to accept its deal with PFN.
On the other hand, the analysts also stated that TSMC presently has more 2nm clients, and PFN’s switch to the Korean brand could signal a swing in Samsung’s favor, opening the door for more big clients to side with the Korean chipmaker. Undoubtedly, the demand for high-performance chips is rising, and competition for technological advancement is fierce, specifically between TSMC and Samsung.
The Taiwanese chipmaker is ahead of the Korean giants by offering chips produced along with its 2nm technology to clients, for instance, Apple and Nvidia. TSMC just aims to begin mass production of chipsets along with 2nm technology in 2025.
However, the Korean brand stated that before stretching to other uses by the end of this year, it will begin mass production of the 2nm process for mobile applications in 2025. It also stated that it will use the advanced 2nm technology for high-performance computing (HPC) chips for supercomputers as well as computer clusters in 2026 and then automotive chips in 2027. Samsung is also gearing up to begin mass production of more advanced 1.4nm chips in 2027.
