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Samsung Electronics wins cutting-edge AI chip order from Japan’s Preferred Networks

ByYasmeeta Oon

Jul 10, 2024

Samsung Electronics wins cutting-edge AI chip order from Japan’s Preferred Networks

Samsung Electronics Co., Ltd. has announced a significant breakthrough in its semiconductor manufacturing division. On Tuesday, the South Korean tech giant revealed that it had secured an order from the Japanese artificial intelligence (AI) company, Preferred Networks, to produce advanced chips using Samsung’s cutting-edge 2-nanometre (nm) foundry process and advanced chip packaging service. This marks the first publicized order for Samsung’s innovative 2nm chip contract manufacturing process, highlighting the company’s strides in the semiconductor industry.

The chips ordered by Preferred Networks will be manufactured using state-of-the-art chip architecture known as gate all-around (GAA) technology. This advanced architecture allows for multiple chips to be integrated into a single package, thereby enhancing inter-connection speeds and reducing the overall size of the chip package. This integration is crucial for the high-performance computing hardware required by Preferred Networks for their generative AI technologies, such as large language models.

Samsung did not disclose the financial details or the size of the order, but the announcement itself is a testament to Samsung’s capability and readiness to lead in the next-generation semiconductor market.

Key Details of Samsung’s Chip Manufacturing for Preferred Networks
CompanySamsung Electronics (005930.KS)
ClientPreferred Networks (Japanese AI company)
Technology2-nanometre (nm) foundry process, gate all-around (GAA) architecture
Design PartnerGaonchips Co (399720.KQ)
ApplicationHigh-performance computing hardware for generative AI technologies
Key AdvantageEnhanced inter-connection speed, reduced chip package size
Announcement DateTuesday (Specific date not provided)

The design of these cutting-edge chips was undertaken by Gaonchips Co. (399720.KQ), a South Korean company known for its expertise in chip design. The collaboration between Samsung and Gaonchips signifies a strong partnership within the South Korean tech ecosystem, ensuring that the design and manufacturing processes are seamlessly integrated.

The implementation of Samsung’s 2nm process and GAA technology offers several significant advantages:

  • Enhanced Performance: The GAA architecture allows for improved electrical characteristics, which leads to faster processing speeds and higher efficiency.
  • Reduced Size: By integrating multiple chips into a single package, the overall size of the hardware is minimized, making it more suitable for compact and high-density applications.
  • Energy Efficiency: The advanced architecture and manufacturing process contribute to lower power consumption, which is critical for AI applications that require extensive computing power.

Preferred Networks, a leader in AI technology, aims to leverage these advanced chips for their high-performance computing hardware. Junichiro Makino, Vice President and Chief Technology Officer of Computing Architecture at Preferred Networks, highlighted the importance of this development in a statement. He emphasized that these chips would be instrumental in powering generative AI technologies, including large language models, which require substantial computational resources.

This partnership between Samsung and Preferred Networks exemplifies the growing synergy between AI technology and advanced semiconductor manufacturing. As AI applications become increasingly sophisticated, the demand for high-performance, energy-efficient chips continues to rise. Samsung’s investment in next-generation manufacturing processes positions the company as a key player in meeting these demands.

The collaboration also underscores the importance of innovation and strategic partnerships in the tech industry. By working with design experts like Gaonchips, Samsung ensures that its manufacturing capabilities are matched with cutting-edge design, resulting in superior products that meet the needs of forward-thinking companies like Preferred Networks.

Samsung’s successful acquisition of this order from Preferred Networks opens up new opportunities in the global semiconductor market. As industries worldwide continue to adopt AI technologies, the demand for advanced chips is expected to grow exponentially. Samsung’s ability to deliver high-quality, efficient chips will likely attract more clients looking for reliable and innovative semiconductor solutions.

Samsung Electronics’ announcement of its first order for 2nm chips marks a significant milestone in the semiconductor industry. The partnership with Preferred Networks and the involvement of Gaonchips in the design process highlight the collaborative efforts within the tech ecosystem to push the boundaries of what’s possible in AI and semiconductor technology. As Samsung continues to innovate and lead in this space, the future of high-performance computing and AI applications looks promising.

With advancements in chip technology and strategic partnerships, Samsung is well-positioned to meet the evolving demands of the tech industry, ensuring that AI applications can operate with greater efficiency and performance. This development not only reinforces Samsung’s role as a leader in semiconductor manufacturing but also sets the stage for future innovations that will drive the next wave of technological progress.

Featured Image courtesy of DALL-E by ChatGPT

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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