Meta Chooses Samsung as Primary Manufacturer for AI Chips

Meta CEO Mark Zuckerberg has reportedly selected Samsung Foundry as the primary manufacturer for its AI chips, aiming to decrease dependence on TSMC.

This decision was influenced by concerns over uncertainty and instability at TSMC, according to a statement from the South Korean presidential office following a meeting between Zuckerberg and South Korean President Yoon Suk Yeol.

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Meta chooses Samsung

Meta has been rapidly advancing in the artificial intelligence arena, undertaking various initiatives. The company has emerged as a major client of Nvidia, purchasing over 350,000 H100 units and equivalents for the current year. In its pursuit of innovation, Meta is not only developing AI models and platforms but is also venturing into the creation of custom AI chips.

The development of its own chips signifies a move towards diminishing and eventually eliminating reliance on external suppliers. In this vein, Mark Zuckerberg’s decision to choose Samsung over TSMC is a strategic one, securing Meta’s future in AI.

Further to choosing Samsung Foundry, Zuckerberg also voiced criticisms towards TSMC. He described the firm’s reliance on Taiwan as “volatile” and unsustainable for the long haul. Given the significant pressure from China on Taiwan, such concerns may seriously impact TSMC, making Meta’s pivot to the more “secure” Samsung Foundry a prudent decision.

Additionally, Zuckerberg’s dinner with Samsung Electronics Chief Executive Officer Lee Jay-yong, though shrouded in secrecy regarding their discussion topics, hints at a plethora of potential discussions.

Likely subjects could include AI hardware, as well as headsets and screens for these devices, not to mention products backed by Meta in collaboration with Samsung.

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