Google to sell Samsung Foundry to Taiwan Semiconductor Manufacturing Co. TSMC By 2025.
What happened: Samsung Electronics SSNLF The company owns Samsung Foundry, which received a major investment from Alphabet Inc. Google Google According to a report by TechNode, Google’s smartphone contract will be contested by rival Taiwan Semiconductor due to Samsung’s outdated FO-PLP (fan-out panel-level packaging) technology.
Taiwan Semiconductor plans to manufacture the Pixel 10’s Tensor G5 using a 3nm process and the Pixel 11 series’ Tensor G6 using a 2nm process.
Related article: Amazon AWS to invest $11 billion in the UK, supporting 14,000 jobs per year
Why this matters: Samsung Foundry currently manufactures the Pixel 8’s Tensor G4 on a 4nm process.
Samsung has worked with Taiwan Semiconductor to develop bufferless High Bandwidth Memory 4 (HBM4) AI chips for customers such as NVIDIA Corp. NVDA TechNode quoted Dan Koch-Pacharin, head of ecosystem and alliance management at Taiwan Semicon, as saying at the Taiwan Semicon 2024 Forum that the company plans to commercialize the new chips in the second half of 2025.
Taiwan Semiconductor reported a 33% increase in sales in August 2024 and expressed optimism about a recovery in the smartphone market and continued demand for Nvidia AI chips. Taiwan Semiconductor shares have risen more than 88% over the past 12 months.
Analysts are predicting further gains for Taiwan Semiconductor and Nvidia, citing the AI ambitions of big tech companies as a key driver. Alphabet shares are up 12% over the past 12 months.
Price Action: TSM shares were up 0.16% at $170.50 in pre-market trading as of last check Thursday. GOOG shares were up 1.06% at $153.77.
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