Meta in Talks with Samsung to Reduce Reliance on TSMC Chip Manufacturing
Meta is working actively towards artificial intelligence and virtual reality, which will bring a new revolution to the tech industry, so to make this happen in reality, the company will need some necessary hardware components, the most important of which is the SoC, which powers the devices. To fully meet its requirements, it has to search for the right partner.
In the chipset market, TSMC is one of the top players, ruling in the standard and advanced chipset market share; however, Samsung is also gradually making advancements in its fabrication process and trying to be the best alternative to TSMC.
As you know, if any company depends on one supplier, it could be disadvantageous because it may have to pay according to what is demanded by the supplier. To get rid of this problem, Meta is planning to partner with an alternative.
According to the information, the Meta CEO, Mark Jukerberg, reportedly spoke about his company’s dependence on TSMC for chips. A senior official from the presidential office told a local reporter that Meta wants to diversify its risk in the geopolitical climate.
The article further mentions that the South Korean president highlights government efforts to invest in chip manufacturing, particularly the construction of the world’s largest semiconductor cluster near Seoul. This gives Meta the straight message to see Samsung as their best option for getting chip supplies.
Meta CEO is also met with Samsung electronics chairman Lee Jae-Young in the South Korea visit; however, there is no information available about what they have discussed officially, but according to some reports, they have talked about the production of AI chips.