Samsung to make new chips for AMD

The business move is in line with Samsung’s long running efforts to increase its chip manufacturing business; AMD’s new “Greenland” GPU and “Zen” CPUs will be built using Samsung’s 14-nanometer process, sources say. The new series will also be taking advantage of Samsung and GlobalFoundaries 14nm LPP node and is scheduled to enter mass production by the end of second quarter of next year. With Samsung and Global Foundries both producing 14 nanometer technology there will be no issues for AMD regarding in-stable supplies.

It’s said Greenland, which is based on the 14nm FinFET process technology, is twice as efficient as the 28nm Fiji. The Abu Dhabi owned company used to belong to AMD until they chose to buy out AMD and become a truly independent chip manufacturer. Selling its stake in the fab company meant that AMD could use other facilities to manufacture its chips, such as TSMC.

Samsung has also struggled recently with declining smartphone and tablet sales, and has been looking to boost its chip making business.

It is noted that Samsung won the Greenland GPU contract with AMD following disappointment with TSMC, which allegedly had issues with yield and instability of supply.

Engadget points out that if the report of Samsung producing AMD chips is true, then AMD may actually get ahead of Intel in the CPU market, as Samsung is expected to ship even more energy efficient and faster 10nm chips by 2016.

Samsung already manufactures chips for other firms including Nvidia and Apple. In 2014, Samsung’s Q3 earnings slumped to $1.54 billion, though it bounced back next year managing to stabilize its smartphone earnings by reaching $2.1 billion.