AMD may outsource GPU and APU production to Samsung

Samsung is investing heavily in its foundry business in a bid to win more clients. It’s competing with TSMC, the world’s largest contract manufacturer of chipsets. With TSMC unable to meet demand, companies are now exceedingly looking toward Samsung for their production needs.

AMD reportedly finds itself in a similar position. According to a new report, the company is looking to outsource its GPU and APU production to Samsung. TSMC currently handles the entirety of AMD’s orders.

AMD could outsource manufacturing to Samsung

TSMC’s manufacturing nodes remain in high demand. Apple remains its biggest customer and it reportedly secured TSMC’s full 5nm capacity last summer. TSMC’s 3nm node is also expected to be used primarily for Apple.

AMD is reliant on TSMC for the manufacturing of its Ryzen CPU/APU series and Radeon GPUs as well as its chips for gaming consoles and data centers. It needs to secure additional production capacity so as to not face disruption in the supplies of its products that are in demand.

Word on the street in South Korea is that AMD is thinking about outsourcing a chunk of its CPU and APU production to Samsung. If that is indeed the case, AMD could be the first company to utilize Samsung’s 3nm node.

There’s no official confirmation about this as yet but it’s entirely within the realm of possibility. It’s no secret that TSMC is unable to keep up with demand. Therefore, Samsung is in a great position to win customers who can’t secure capacity at TSMC.

Samsung and AMD also have an existing relationship. The two are working on a custom mobile GPU that will be utilized for upcoming Samsung Exynos processors.

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