Archive — CN — technode
AMD reportedly drops Samsung 4nm orders, moves to TSMC’S Arizona fab
AMD has canceled its 4nm orders with Samsung due to low yield rates and US tariffs, opting to shift production to TSMC’s Arizona facility. This decision ends AMD's prior dual-sourcing strategy, as the company seeks to improve its chip production capabilities amidst trade concerns.
Key points
- AMD faced low yield rates from Samsung on 4nm orders, impacting their production quality.
- US tariffs on semiconductor imports influenced AMD's decision to avoid reliance on Samsung.
- AMD originally aimed for a dual-sourcing strategy, collaborating with Samsung on producing EPYC processors, Ryzen APUs, and Radeon GPUs.
- TSMC’s Arizona site has started large-scale 4nm production, making it a viable alternative.
- Other major chipmakers, like NVIDIA and Apple, are also shifting to TSMC Arizona to mitigate trade risks.
Why it matters
- This shift reflects a broader trend in the semiconductor industry as companies adapt to changing trade policies and production challenges.
- The move aligns with ongoing IT trends as businesses seek reliable production sources amid geopolitical tensions that affect technology supply chains.
- This decision by AMD could impact competition in the semiconductor market, especially in terms of advanced fabrication capabilities.
AMD's shift to TSMC's Arizona fab highlights the industry's response to production challenges and trade risks, marking a significant change in their supply chain strategy.