Would Samsung finally be able to secure major orders from tech giants, even one of the world’s top AI companies? According to a report by The Information, the most successful and lucrative partnership in AI business, which is formed by NVIDIA and its foundry partner TSMC, is showing signs of strain, while Samsung may turn out to benefit from the development.

However, it is worth noting that the orders Samsung might get from NVIDIA may not be the most advanced AI chips. According to the reports by The Information and SamMobile, the U.S. AI chip giant is mulling to team up with Samsung to produce its new GPUs, which are considered less complex to manufacture than its AI accelerators.

The reports also suggest that NVIDIA is trying to secure discounted pricing from Samsung, as it aims for a 20-30% reduction compared to what it pays TSMC.

According to the analysis by SamMobile, NVIDIA’s move is an attempt to reduce its dependence on TSMC for upcoming chips, which is a positive development for Samsung.

Though the struggling semiconductor giant is said to have several clients for 5nm, 7nm and 8nm nodes, the continuous yield issues for 3nm and 4nm makes it unable to attract major customers, according to SamMobile, while the company now hopes to improve its yields and regain clients like Qualcomm and NVIDIA.

According to The Information, Samsung’s opportunities arise while NVIDIA’s Blackwell chips, built with TSMC’s 4nm, reportedly faced delays due to issues discovered in the testing process. The chips are said to have failed in high-voltage environments typical of data centers, which put strain on the decades-long partnership between the two firms.

For now, the issues have been resolved, and Team Green’s Blackwell chips are expected to ramp up starting from Q4 2024. According to a report by Wccftech, citing the projection by analyst Ming-Chi Kuo, Blackwell’s estimated shipments are expected to be around 150,000 to 200,000 units this quarter, and surging to 500,000 to 550,000 units in Q1 2025.

According to Kuo, Microsoft is believed to be the major customer, with its orders for GB200 in Q4 skyrocketing, rising 3 to 4 times from the previous range of 300 to 500 racks (primarily NVL36) to about 1,400 to 1,500 racks (approximately 70% NVL72).

Read more

• [News] NVIDIA’s Blackwell Overcomes Delays, as GB200 Reportedly Sets for December Mass Production

(Photo credit: NVIDIA)

At its previous earnings call in July, Samsung has announced the ambitious goal that its HBM sales would increase three to five times in 2H24. However, as it is still struggling to pass the verification of 12-Hi HBM3e products, the company’s prospects for returning to glory in the near term seems to be rather dim.

According to a report by Korean media outlet ZDNet, the main issue may lie in the core die of HBM, while the adoption of 1a DRAM is hindering Samsung’s recent efforts to supply HBM3e for NVIDIA.

Notably, an insider cited by the report notes that Samsung’s Vice Chairman Jun Young-hyun, the new Head of Device Solutions (DS) Division, is aware of these issues, so the decision for whether to redesign the 1a DRAM or not may be made soon.

According to the report, Samsung began the mass production of 1a (4th generation) DRAM, which has a linewidth of approximately 14 nm, as early as in the second half of 2021. It is worth noting that the company tries to enhance the product’s competitiveness by actively adopting advanced technologies such as EUV (extreme ultraviolet lithography).

ZDNet notes that Samsung applied five EUV layers to its 1a DRAM, which is significantly more than the one layer used by its major competitor, SK hynix.

However, though EUV is advantageous for reducing linewidths compared to the existing ArF (argon fluoride) lithography process, which is supposed to enhance efficiency and thus lowering manufacturing costs, EUV’s high technical difficulty has negatively affected the stability of the process, according to the report.

As a result, the cost of Samsung’s 1a DRAM has not decreased as initially anticipated, according to the report, with the yield issue occurring reportedly hinders Samsung’s HBM3e verification progress with NVIDIA.

Previous reports indicate that Samsung had conducted an on-site inspection with NVIDIA regarding the 8-layer HBM3e products at its Pyeongtaek campus. While the inspection itself concluded without any issues, concerns have reportedly been raised as the data processing speed (Gbps) of Samsung’s 8-layer HBM3e is about 10% lower compared to its rivals, according to sources cited by ZDNet.

Both SK hynix and Micron utilize 1b DRAM for their HBM3e core dies, the report notes.

Therefore, industry insiders cited by ZDNet reveal that Samsung has been internally discussing the possibility of redesigning some of the circuits in its 1a DRAM.

However, If Samsung does proceed with the redesign, it is expected to take at least six months for the product to be completed, the report suggests, which means the mass production could only begin by the second quarter of next year, and it will be challenging to supply the product in a timely manner.

Read more

• [News] Lagging behind SK hynix in HBM, Samsung Plans Significant Year-end Cuts to Chip Executives
• [News] Samsung Rumored to Cut HBM Production Target by 10% by End of 2025 amid HBM3e Delays

(Photo credit: Samsung)

Ahead of TSMC’s upcoming third-quarter earnings call this Thursday, a report by the Commercial Times gives a heads-up on the foundry giant’s outlook of 3nm orders next year. With NVIDIA and AMD ramping up their next-gen AI accelerators, combined with the strong demand from smartphone chips, orders for TSMC’s 3nm node are set to see a surge in 2025, the report indicates.

According to analysts cited by the report, most flagship smartphone chips are expected to be manufactured with 3nm next year. For instance, Apple’s A19 Pro is said to adopt TSMC’s N3P process, while the Android phones are likely to follow suit.

In terms of the demand from AI accelerators, the report notes that AMD’s MI350 series will likely be manufactured with the 3nm node, which is going to benefit TSMC.

It is worth noting that according to another report by Commercial Times, at Advancing AI 2024 last week, AMD CEO Lisa Su highlighted the company’s close partnership with TSMC, saying that she would be glad to see the CHIPS Act bringing more manufacturing lines back to the U.S.

Sources cited by Commercial Times suggest that for now, AMD has no plans to collaborate with chip makers other than TSMC, and that the company is currently conducting a qualification assessment for chip production at TSMC’s Arizona fab (Fab 21).

On the other hand, Commercial Times indicates that NVIDIA’s orders on TSMC will likely see an increase next year, which would further tighten the foundry giant’s capacity in 3nm and 5nm. NVIDIA’s R-series GPUs are reportedly to be manufactured with TSMC’s 3nm as well, the report notes, but it would not be released until 2026.

TSMC is expected to see strong 3nm demands from other tech giants in 2025 as well. According to the report, Intel is said to outsource most of its Lunar Lake chips to TSMC, while the AI PC chip MediaTek co-develops with NVIDIA is also rumored to be built using the 3nm process. The report states that this chip is expected to debut in the second quarter of next year and enter mass production in the third quarter.

Sources cited by the report note that as clients turn to place orders on 3nm for their latest AI accelerators, foundry capacity will further be strained. Notably, TSMC’s CoWoS packaging reportedly allows interposers reaching 3.3 times for its maximum reticle size to manufacture chips such as NVIDIA’s B200, AMD’s MI300, or Intel’s Gaudi 3, with the number of chips produced on per interposer becoming fewer.

Read more

• [News] Intel Shifts to TSMC for Chip Production: A Looming Threat for AMD?
• [News] NVIDIA and MediaTek Reportedly Team up on 3nm AI PC Processors, with Tape-outs Expected This Month

(Photo credit: TSMC)

Nvidia CEO Jensen Huang’s net worth has now reached USD 109.2 billion, surpassing Intel’s total market value of USD 96.595 billion. This development has sparked excitement among many netizens, with some calling for Huang to acquire Intel and create a new tech industry merger legend.

In fact, tech companies have long led the way in mergers and acquisitions (M&A), driven by the need to stay ahead in technological innovation and strengthen their market positions. Large-scale mergers have been a common strategy for tech giants looking to secure a competitive edge. The M&A Community has compiled a list of the 11 largest tech mergers in history.

Microsoft and Activision Blizzard

Microsoft’s USD 69 billion acquisition of gaming giant Activision Blizzard, completed in 2023 after overcoming regulatory challenges in the U.S. and UK, has solidified the tech giant’s position in the gaming market, particularly for its Xbox platform. Activision Blizzard, known for popular titles such as Warcraft and Call of Duty, gives Microsoft a strategic advantage in the competitive gaming industry.

EMC and Dell

In 2016, Dell finalized its USD 67 billion acquisition of EMC, a leader in data storage and security. The merger, one of the largest in tech history, combined Dell’s hardware expertise with EMC’s advanced storage solutions, strengthening its position in enterprise IT and cloud computing.

AMD and Xilinx

AMD’s USD 49 billion acquisition of Xilinx, completed in 2022, marked a significant expansion of AMD’s semiconductor capabilities, particularly in adaptive computing. The deal, initially valued at USD35 billion, surged in value by the time it closed, positioning AMD as a major player in the semiconductor industry.

Avago and Broadcom

Avago’s USD 37 billion acquisition of Broadcom in 2016 brought together two semiconductor powerhouses. The merger created a stronger presence in wireless communications and infrastructure, with Broadcom’s strengths in communications semiconductors complementing Avago’s portfolio in wired and wireless solutions.

IBM and Red Hat

IBM’s USD 34 billion purchase of open-source leader Red Hat in 2019 was a landmark deal, designed to boost IBM’s cloud and hybrid cloud offerings. The acquisition positioned IBM as a key player in enterprise cloud solutions, leveraging Red Hat’s expertise in open-source software.

Salesforce and Slack

Salesforce completed its USD 27.7 billion acquisition of Slack in 2021, a move aimed at integrating Slack’s communication platform with Salesforce’s customer relationship management (CRM) tools. The deal created a unified solution for enterprise collaboration, further enhancing Salesforce’s suite of cloud-based business tools.

Microsoft and LinkedIn

Microsoft’s USD 26.2 billion acquisition of LinkedIn in 2016 was designed to enhance business productivity by integrating LinkedIn’s networking platform with Microsoft’s suite of enterprise software. The deal allowed Microsoft to expand its reach in the professional networking space.

HP and Compaq

HP’s USD 25 billion acquisition of Compaq in 2002 was one of the largest tech mergers at the time, but it ultimately became known as a failure. The merger led to significant market value losses for HP, and its long-term impact was negative.

Facebook (Meta) and WhatsApp

Facebook’s USD 19 billion acquisition of WhatsApp in 2014 was widely regarded as a success. The deal allowed Facebook, now Meta, to significantly expand its global reach, particularly in international markets where WhatsApp has a strong user base.

Silver Lake and Qualtrics

In 2023, Silver Lake completed a USD 12.5 billion deal to acquire Qualtrics from SAP, marking another high-value transaction in the tech industry. The acquisition strengthened Silver Lake’s investment portfolio, particularly in the data analytics and survey software space.

Adobe and Marketo

Adobe’s USD 4.75 billion acquisition of Marketo in 2018 enhanced its marketing automation capabilities, allowing Adobe to offer a more comprehensive marketing platform to both B2B and B2C clients. The deal boosted Adobe’s presence in digital marketing solutions.

(Photo credit: Microsoft)

Rumors have been circulating recently that NVIDIA, after the shipment of GB200 in the fourth quarter, is mulling to replace the current on-board solution with an independent GPU socket design, which might benefit Taiwanese supply chain companies such as Foxconn and interconnect component supplier LOTES, according to the reports by MoneyDJ and the Economic Daily News.

Industry sources further indicate that NVIDIA is expected to switch from an OAM type (on-board solution) to a socket type soon, starting with the GB300 product line.

It is understood that after the second half of 2025, the B300 series will likely to become the mainstream product for NVIDIA. The main attraction of the B300 series is said to be its adoption of FP4, which is well-suited for inference scenarios.

This change of design is expected to improve the yield rate for GPUs though it might probably reduce performance. According to the Economic Daily News, adopting socket design will help simplify after-sales service and server board maintenance, as well as optimize the yield of computing board manufacturing.

On the other hand, the new design is believed to allow more production flexibility, as manufacturers may not need to be equipped with SMT production line.

It is worth noting that if NVIDIA does initiate the change, this would mark the first time the AI chip giant introduces socket design in its GPU products, the Economic Daily News notes. However, this is not the first instance for the design to be introduced in the industry, as NVIDIA’s archrival AMD has adopted the socket design in 2023 with MI300A, according to the report.

Despite recent speculations concerning Blackwell’s yield rate, a previous report by Commercial Times noted that NVIDIA’s updated version of B200 is expected to be completed by late October, allowing the GB200 to enter mass production in December. In an interview with CNBC, NVIDIA CEO Jensen Huang stated that the demand for the company’s next-generation Blackwell AI chip is “insane,” and that “everybody wants to have the most and everybody wants to be first.”

Read more

• [News] NVIDIA’s Blackwell Overcomes Delays, as GB200 Reportedly Sets for December Mass Production
• [News] Foxconn Remains Unfazed Despite NVIDIA’s GB200 Delay, with Customers Aim to Secure Their Orders

(Photo credit: NVIDIA)