Samsung Set To Produce 14nm Chips For AMD In 2016

Samsung could use a financial boost after a decline in mobile profit led to the company posting an overall loss last year. It has a new boss in charge of mobile, and to keep the cash flowing (and investors happy), Samsung will produce 14nm CPU and GPU semiconductors for Advanced Micro Devices (AMD) starting in 2016.

AMD currently has all its chips in one basket, so to speak, that basket being GlobalFoundries. Taiwan Semiconductor Manufacturing Company (TSMC) also used to build chips for AMD, though yield and supply woes forced AMD to look elsewhere for help, and right now it's looking in the direction of Samsung.

Samsung

Adding Samsung would give AMD two sources for 14nm semiconductors, including its new "Greenland" GPUs and "Zen" CPUs. With two manufacturers to lean on, AMD should be less susceptible to supply issues as it dukes it out with NVIDIA in the GPU arena and Intel in the CPU arena.

The smaller manufacturing process should put AMD in a better position to compete with its rivals. Next generation parts should be significantly more power efficient and faster than AMD's current offerings. The potential is especially exciting for AMD's upcoming GPUs, which may also sport second generation High Bandwidth Memory (HBM).

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