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Samsung Electronics

Samsung to make Nvidia’s latest gaming chips in stepped-up foundry business

Sep 02, 2020 (Gmt+09:00)

Samsung Electronics Co. will manufacture Nvidia Corp.’s latest gaming chips as the South Korean tech giant aims to expand its presence in the foundry business.

Unveiling a series of powerful gaming chips it designed, the Santa Clara, California-based company said its next-generation graphic processing unit (GPU), the GeForce RTX30 series, will be produced by Samsung’s 8-nanometer chipmaking process node.

Nvidia has long worked with a variety of chips manufacturers to fabricate its devices, and more recently has mostly relied on Taiwan Semiconductor Manufacturing Co. (TSMC) for its advanced chips.

Nvidia said it is working with Samsung to customize the process so that the new chips will be about 10% faster than other Samsung-made chips manufactured with the same 8nm process.

Nvidia CEO Jen-Hsun Huang said the new chips will improve video game graphics with twice the performance and nearly twice the power efficiency of previous versions.

Samsung Electronics, chips

Analysts said the latest collaboration with Nvidia will boost sales of Samsung's foundry business and give it the momentum needed to narrow the gap with market leader TSMC.

The deal comes after Samsung said last month it is manufacturing IBM’s POWER10 Processor, using its 7nm technology.

SAMSUNG EYES GLOBAL FOUNDRY LEADERSHIP

In recent years, Samsung Vice Chairman Jay Y. Lee has repeatedly shown his dedication to the system semiconductor business. The global chipmaker was a latecomer to the foundry industry and did not have an extensive relationship with existing global fabless companies, compared to frontrunner TSMC.

In April 2019, Lee said that the company would inject 133 trillion won ($112 billion) into its system semiconductor operations to become the world leader in both the memory and system chip businesses.

According to market researcher TrendForce, Samsung had a 17.4% market share in the global foundry industry in the third quarter of the year, following TSMC’s 53.9%.

By Jeong-Soo Hwang

hjs@hankyung.com

In-Soo Nam edited this article

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