Meta Switches To Samsung Foundry from TSMC For AI Chip Due To Uncertainty

In a significant departure from its previous manufacturing partner, TSMC, Meta has chosen Samsung Foundry for its AI chip development endeavors.


In a groundbreaking move that has sent shockwaves through the semiconductor industry, Meta, under the leadership of CEO Mark Zuckerberg, has announced its departure from TSMC in favor of Samsung Foundry for AI Chip Development.

This strategic shift signifies a significant paradigm shift in the landscape of semiconductor manufacturing and AI technology. Let’s delve into the intricacies of this decision and its profound implications for the industry.

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Meta AI Chip: MTIA

AI chips are purpose-built to handle AI workloads. They are architected to perform a high volume of concurrent operations, often using lower-precision arithmetic. It is typically sufficient for AI workloads and allows for more computations per watt of power by minimizing memory pressure and bringing the data closer to the computation. Furthermore, many AI chips are designed with specific hardware features for accelerating AI-related tasks.

Meta has been heavily invested in AI development and relies on powerful AI chips for their computing needs. They’ve been a big customer of NVIDIA’s AI chips, but are looking to develop their own custom solutions.

Meta has devised MTIA to streamline the processing of their AI tasks. This custom Application-Specific Integrated Circuit (ASIC) is tailored to enhance the efficiency of Meta’s recommendation systems.

Meta is pouring significant financial resources into custom chip development. Dedicated R&D teams are spearheading these efforts. This culminated in Meta’s decision to partner with Samsung Foundry.

In 2020, Meta crafted the inaugural MTIA ASIC exclusively for its internal tasks. Manufactured utilizing the TSMC 7nm process, the chip operates at 800 MHz. MTIA delivers 102.4 TOPS at INT8 precision and 51.2 TFLOPS at 16-bit floating-point precision. Additionally, it boasts a thermal design power (TDP) of 25 W.

Why the Shift for Meta AI chip ?

As per Koreatimes, Meta’s decision to switch chip manufacturing partners is rooted in several factors. Firstly, the company cited concerns over the “uncertainty and volatility” associated with TSMC, particularly in light of geopolitical tensions and supply chain disruptions.

A KoreaTimes report states that Mark Zuckerberg met with South Korean President Yoon Suk Yeol. They discussed Meta’s increased cooperation with Samsung Foundry in AI. Zuckerberg lauded Samsung Foundry as the “world’s largest chip maker,”. This emphasizes Samsung’s pivotal role in Meta’s forthcoming ventures in this sector. Meta’s shift to a new foundry partner signifies a triumph for the Korean conglomerate. Samsung has been notably proactive in securing new clients and fostering trust in recent market endeavors.

Mark Zuckerberg emphasized the importance of stability and security in Meta’s operations. It is prompting the search for a more reliable manufacturing partner.

Implications for TSMC:

Losing a high-profile client like Meta underscores the challenges TSMC faces in maintaining its market dominance amidst increasing competition & geopolitics.

The move prompts questions about TSMC’s future strategies and its ability to adapt to evolving market dynamics.

Moreover, it raises concerns about the broader implications for Taiwan’s semiconductor industry, given TSMC’s central role in the country’s economy.

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The Broader Impact:

Beyond its immediate ramifications, Meta’s decision has broader implications for the semiconductor industry as a whole.

It highlights the increasing importance of strategic partnerships and supply chain resilience in an era of geopolitical uncertainty and technological disruption.

The shift also underscores the growing influence of non-traditional players. Such as tech giants like Meta, in shaping the trajectory of semiconductor development and adoption.

Moreover, it signals a paradigm shift in the dynamics of the global semiconductor market, with potential ripple effects on industry stakeholders and market participants.

Read More: How Nanoimprint Lithography Can Revolutionize Manufacturing – techovedas


Meta’s strategic decision to partner with Samsung Foundry for AI chip development marks a pivotal moment in the semiconductor industry’s evolution.

Editorial Team
Editorial Team
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