Samsung Electronics, the global leader in memory chip manufacturing, has joined forces with Canadian computing startup Tenstorrent to produce next-generation artificial intelligence (AI) chiplets.
Tenstorrent has chosen Samsung’s Foundry Design Service team to manufacture these chiplets, which have broad-ranging applications from edge devices to data centers, ensuring top-notch quality and cutting-edge manufacturing capabilities, according to media reports.
Tenstorrent CEO’s Appreciation
Tenstorrent CEO, Jim Keller, expressed his satisfaction with the collaboration, highlighting Samsung Foundry’s dedication to advancing semiconductor technology. He emphasized how this partnership perfectly aligns with Tenstorrent’s vision to advance RISC-V and AI technologies, making Samsung an ideal partner to bring their AI chiplets to the market.
Samsung’s Contribution to Tenstorrent’s Innovation
Marco Chisari, head of Samsung’s U.S. Foundry business, stated that Samsung’s advanced silicon manufacturing nodes will significantly accelerate Tenstorrent’s innovations, particularly in the areas of AI and RISC-V technologies. This collaboration is poised to drive advancements and breakthroughs in the field of artificial intelligence.
Potential Chip Deficit Reduction for Samsung
In recent analyses, it is predicted that Samsung may reduce its chip deficit in the third quarter, primarily due to a continuous reduction in chip output. The company initiated this production cut earlier in the year to address the persistent supply glut that the industry faced.
Analyst Projections
Kim Dong-won, an analyst at KB Securities, forecasts a decrease in losses for Samsung’s Device Solutions (DS) division, overseeing the chip business, estimating around 4 trillion won ($2.96 billion) in losses for the third quarter, compared to the 4.35 trillion won in the second quarter. The increase in the production cut for DRAM and NAND Flash is seen as a strategic move to address market dynamics.
Background on Samsung’s Recent Performance
Samsung’s DS division experienced an operating loss of 4.6 trillion won in the first quarter, marking the first financial loss in 14 years due to significant chip inventories and tapering global demand. This was the first quarterly loss since the first quarter of 2009. However, strategic measures, such as production cuts and collaborations like the one with Tenstorrent, are expected to steer the division back towards a path of growth and stability.
