Samsung Electronics, a global leader in memory chip manufacturing, has entered into an agreement with Canadian computing startup Tenstorrent to produce next-generation artificial intelligence (AI) chiplets. Tenstorrent has chosen Samsung's Foundry Design Service team for the production of these versatile chiplets, which are designed for applications ranging from edge devices to data centers, ensuring exceptional quality and state-of-the-art manufacturing capabilities.
Jim Keller, CEO of Tenstorrent, expressed confidence in Samsung Foundry's dedication to advancing semiconductor technology, aligning with Tenstorrent's vision for advancing RISC-V and AI. He stated, "Samsung Foundry's commitment to advancing semiconductor technology aligns with our vision for advancing RISC-V and AI and makes them an ideal partner to bring our AI chiplets to market."
Marco Chisari, the head of Samsung's U.S. Foundry business, highlighted that Samsung's advanced silicon manufacturing nodes will accelerate Tenstorrent's innovations in these areas, solidifying the partnership's potential for significant advancements in AI and computing technology.
The collaboration comes as Samsung anticipates a reduction in its chip deficit during the third quarter, primarily due to the ongoing decrease in chip production. This strategic move aims to address the long-standing oversupply issue in the chip market.
Earlier this year, Samsung joined its industry peers, including SK hynix Inc. and Micron Technology Inc., in reducing chip production to address the persistent chip glut. Analysts anticipate that Samsung's Device Solutions (DS) division, which oversees its chip business, will report a third-quarter loss of approximately 4 trillion won ($2.96 billion), a slight improvement from the 4.35 trillion won loss recorded in the second quarter.
Analyst Kim Dong-won at KB Securities explained that Samsung has intensified its production cuts for the second half of the year, reducing DRAM production by 30% and NAND Flash production by 40%, up from the 20% and 30% cuts implemented in the first half. This reduction in chip production aims to balance supply and demand, ensuring a more stable and sustainable chip market.
Samsung's DS division experienced its first financial loss in 14 years during the first quarter of this year, with growing chip inventories amidst weakening global demand. Prior to this, the division reported losses only in the first quarter of 2009, making the strategic adjustments to chip production crucial for its long-term profitability and market stability.
Inputs from IANS