Samsung wins first 2 nm AI chip order from Japan’s PFN; a snub to TSMC

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PFN's switch to Samsung for advanced foundry will open the door for the Korean chipmaker to win bigger clients

www.kedglobal.com/, Feb. 16, 2024 – 

Samsung Electronics Co., the world's largest memory chipmaker, has won its first 2-nanometer node artificial intelligence chip production contract from Japanese startup Preferred Networks Inc. (PFN) – a big win over Taiwan Semiconductor Manufacturing Co. (TSMC) in the race for advanced chip processing technology.

Under the deal, Suwon, South Korea-based Samsung will make AI accelerators and other AI chips with its latest 2 nm chip processing tech for PFN, industry sources said on Friday.

PFN has been collaborating with TSMC since 2016 but it decided to produce its next-generation AI chips on Samsung's 2 nm node, a person familiar with the matter said.

The deal benefits both parties as PFN can gain access to newer chip technologies that will allow it to get an edge against the competition, while Samsung has secured an actual customer for its most advanced chip tech, gaining ground in its foundry market battle with TSMC, sources said.

Established in 2014, PFN is known for its expertise in AI deep learning development and has attracted large-scale investments from major companies, including Toyota Motor, NTT and FANUC, a Japanese robot system maker.

Sources said PFN decided to forgo TSMC as Samsung provides a comprehensive chip-making service on a turnkey basis, from chip design to production and advanced chip packaging.

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