The tide may finally be turning for Samsung’s foundry as it picks up new deals from major clients. It recently inked a $16.5 billion agreement with Tesla to manufacture the carmakers next-generation chip, with Elon Musk claiming that the deal could end up being even more substantial.
IBM, a major tech player, has now reportedly inked a chipmaking deal with Samsung foundry, with the Korean giant making its next-generation data center chip.
IBM deal will further boost the foundry’s balance sheet
According to media reports, IBM has awarded a chip manufacturing contract to Samsung foundry for the Power11, its new data center chip. Samsung will reportedly manufacture this deal on its refined 7nm process to ensure performance and yield gains for the client.
Samsung’s 7LPP process was the world’s first 7nm node to utilize EUV technology, thus promising a 23% gain in performance and 45% reduction in power consumption. In addition to handling the fabrication, Samsung is also said to apply its 2.5D ISC architecture packaging to further improve the chip’s performance.
Following its struggles with yield on advanced nodes, Samsung foundry has been focusing on building its order book on mature processes where yields range from 70-80%, thus providing clients with a depending manufacturing partner that has the capability and scale to deliver.
Similar deals have also reportedly been signed with Nintendo and several Chinese fabless companies. These deals will help support Samsung foundry in the short term as it continues to focus on improving its competitiveness on the advanced nodes.
