Meta looks to Samsung for reducing its chip dependence on TSMC
Meta is heavily invested in artificial intelligence and extended reality. As such, the company is in need of advanced chips, and there are only a handful of companies in the world that can produce these chips. TSMC is one of the leading producers which is why all tech companies flock to it, but Samsung’s also carving a niche for itself in this market.
Since companies like to dual-source for supply chain diversification and reduction of procurement costs, Samsung becomes a valuable second option for those looking to reduce their reliance on one company for all of their chips. That’s precisely the role Meta wants Samsung to play for it.
Samsung is a viable option for companies that need a TSMC alternative
Meta CEO Mark Zuckerberg was recently on a visit to South Korea after over a decade. He met with South Korean President Yoon Suk Yeol and discussed a wide range of mutual interest topics. Zuckerberg highlighted Samsung’s status as a major foundry company and that this was a key point of cooperation between the two companies.
The Meta CEO reportedly spoke about his company’s increasing dependence on TSMC for chips, describing it as a “volatile” situation. A senior official from the presidential office told local reporters that Zuckerberg’s remarks suggest Meta wants to diversify its risk during the current geopolitical climate and have Samsung produce some of its AI and XR chips as well.
The country’s president highlighted the government’s support for Samsung’s investments in chip manufacturing, particularly the construction of the world’s largest semiconductor cluster, near Seoul. It sends a signal to Meta that the country’s administration stands behind its semiconductor industry, and that companies willing to reduce their reliance on TSMC will find a willing partner in not just Samsung but also the South Korean government.
Zuckerberg also met with Samsung Electronics Chairman Lee Jae-yong during his trip to Korea. While no official handout was provided, reports suggest that discussions between the two likely included the production of AI chips.
Meta is heavily invested in artificial intelligence and extended reality. As such, the company is in need of advanced chips, and there are only a handful of companies in the world that can produce these chips. TSMC is one of the leading producers which is why all tech companies flock to it, but Samsung’s also carving a niche for itself in this market.
Since companies like to dual-source for supply chain diversification and reduction of procurement costs, Samsung becomes a valuable second option for those looking to reduce their reliance on one company for all of their chips. That’s precisely the role Meta wants Samsung to play for it.
Samsung is a viable option for companies that need a TSMC alternative
Meta CEO Mark Zuckerberg was recently on a visit to South Korea after over a decade. He met with South Korean President Yoon Suk Yeol and discussed a wide range of mutual interest topics. Zuckerberg highlighted Samsung’s status as a major foundry company and that this was a key point of cooperation between the two companies.
The Meta CEO reportedly spoke about his company’s increasing dependence on TSMC for chips, describing it as a “volatile” situation. A senior official from the presidential office told local reporters that Zuckerberg’s remarks suggest Meta wants to diversify its risk during the current geopolitical climate and have Samsung produce some of its AI and XR chips as well.
The country’s president highlighted the government’s support for Samsung’s investments in chip manufacturing, particularly the construction of the world’s largest semiconductor cluster, near Seoul. It sends a signal to Meta that the country’s administration stands behind its semiconductor industry, and that companies willing to reduce their reliance on TSMC will find a willing partner in not just Samsung but also the South Korean government.
Zuckerberg also met with Samsung Electronics Chairman Lee Jae-yong during his trip to Korea. While no official handout was provided, reports suggest that discussions between the two likely included the production of AI chips.
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