AMD, Google, BYD, Tesla eye Samsung for chip production

AMD ↗4.86%, Google ↗1.48%, BYD, Tesla ↗1.04%, and Nvidia ↗2.95% are in foundry talks with Samsung, according to Nikkei Asia.sammobile
TSMC capacity constraints are driving clients to Samsung, which is testing its 2nm process with AMD for CPUs expected in 2028.tradingkey
The order surge could push Samsung’s foundry division to profitability by Q3 2026, ahead of its prior target, according to industry analysts.chosun

Samsung Foundry in Talks With AMD, BYD, Google, and Tesla for Chip Production

Samsung Electronics is drawing growing interest from several of the world’s largest technology companies for contract chip manufacturing, as capacity constraints at rival TSMC push clients to seek alternatives amid surging AI infrastructure demand.

Major Clients Circle Samsung

According to a report from Nikkei Asia published on June 16, AMD, BYD, Google, Tesla, and Nvidia are increasingly looking to Samsung’s foundry division for advanced semiconductor production. The report comes as TSMC’s advanced process lines have reached near-saturation due to demand for AI accelerators.sammobile

AMD is in talks with Samsung to manufacture CPUs beginning in 2028. The discussions between the two companies have been ongoing for months — AMD CEO Lisa Su visited Samsung’s semiconductor manufacturing campus in Pyeongtaek, South Korea, in March. Samsung has been running sample tests with AMD on its second-generation 2nm process, known as SF2P, with the chip believed to be AMD’s next-generation EPYC Venice server CPU.tradingkey

BYD, Google, and Tesla Deepen Engagement

BYD is negotiating with Samsung over autonomous driving chip production, involving its Xuanji A3 series on 4nm and next-generation 2nm gate-all-around technology. Google is exploring having Samsung manufacture components for its next-generation Tensor Processing Units, with a 2nm memory I/O die for its 10th-generation TPU under discussion and mass production potentially beginning in 2028. Tesla’s AI6 chip has been confirmed for production at Samsung’s Taylor plant in Texas.trendforce

Path to Profitability

The influx of orders is accelerating Samsung Foundry’s path back to profitability after years of multi-trillion-won losses. Industry analysts now expect the division could return to profit as early as the third quarter of 2026, ahead of its previous target of late 2026 to 2027. Samsung’s Taylor fab in Texas, backed by more than $37 billion in investment, is ramping toward mass production, positioning it as the only U.S.-based facility capable of leading-edge manufacturing.chosun

Groq, which develops language processing units, is already manufacturing its latest chips through Samsung Foundry and considering the firm for next-generation production as well.sammobile