Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 5, according to Digitimes, Nvidia is considering outsourcing part of the AI GPU to Samsung Electronics due to the increasing shortage of TSMC capacity. Industry watchers point out that Samsung may get some orders from Nvidia if Samsung's 3nm test products pass performance verification and its 2.5D advanced packaging technology meets Nvidia's requirements.

South Korean media Chosun Biz recently quoted local semiconductor industry sources as saying that Nvidia is in negotiations with Samsung on chip contract manufacturing, and the two sides will conduct performance verification discussions based on the most advanced technology.

Most industry insiders in South Korea believe that the possibility of Samsung getting a large order from Nvidia is not high, but due to the risk of relying solely on TSMC to meet the needs of all AI graphics card customers, Nvidia will not rule out the option of Samsung as the second contract manufacturing partner.

With the rise of artificial intelligence-related services, IT is actively purchasing GPU to build artificial intelligence data centers. Market Watch predicts that the global GPU market could grow from $19.711 billion in 2021 (CTOnews.com Note: about 142.313 billion yuan) to about $33.463 billion (currently about 241.603 billion yuan) in 2028, with a compound annual growth rate of 7.85 percent over the period.

At present, the AI GPU market is dominated by Nvidia and AMD, but Nvidia has more than 90 per cent market share in the AI GPU that drives large language models (LLM) such as ChatGPT.

In response to the rapid surge in demand for AI GPU, Nvidia may work with Samsung to mitigate the risk of supply shortages, although Samsung's 3nm manufacturing process has yet to achieve a steady yield, according to some industry analysts. Therefore, in addition to the performance verification of the 3nm test chip, whether Samsung's advanced packaging technology can meet Nvidia's requirements is another key factor that determines the potential cooperation between the two sides.

In order to upgrade packaging technology, Samsung just established the Multi-Chip Integration Alliance (MDI) in June, seeking to expand the ecosystem of partners, continuously improve stacking technology and actively invest in 2.5D and 3D packaging technology. In contrast, TSMC has been ploughing 2.5D CoWoS packaging technology for many years, successfully using this technology to improve the computing performance of chips, and becoming the preferred foundry partner of AI and HPC chip manufacturers.

Samsung has also completed orders for graphics cards for Nvidia in the past, including using an 8-nanometer process to produce the GeForce RTX30 series in 2020, followed by a 14-nanometer mobile GPU chip. However, all of Nvidia's current flagship A100 and H100 GPU that support ChatGPT and other AI applications are produced by TSMC.

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